# FORM 10-KUNITED STATES SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549

_________________

|[X] | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                OF
1934 For the fiscal year ended December 31, 2003
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

OR

|[   ] | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
         For the Transition period from __ to __
|----- | -----------------------------------------------------------------------------------------------------------------------------------------

Commission file number
0-18110

Gehl Company
                                       (Exact name of registrant as specified in its
charter)

|Wisconsin                                                      | 39-0300430                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)

|143 Water Street, West Bend, WI         | 53095     
|--------------------------------------- | ----------
|(Address of principal executive office) | (Zip Code)

Registrants
telephone number, including area code   (262) 334-9461

Securities registered
pursuant to Section 12(b) of the Act:

NONE

Securities registered
pursuant to Section 12(g) of the Act:

Common Stock, $.10
par value(Title of class)

Rights to Purchase Preferred
Shares(Title of class)

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

|Yes  X | No
|------ | --

Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is
not contained herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K  [ X ]

Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act.)

|Yes | No  X
|--- | -----

Aggregate
market value of voting stock held by non-affiliates of the registrant: $67,556,906 at
February 13, 2004.

Number
of shares outstanding of each of the registrants classes of common stock, as of
February 13, 2004:

|Class                        | Shares Outstanding
|---------------------------- | ------------------
|Common Stock, $.10 Par Value | 5,335,939         

DOCUMENTS INCORPORATED
BY REFERENCE

Gehl Company Proxy
Statement for the 2004 Annual Meeting of Shareholders (to be filed with the Commission
under Regulation 14A within 120 days after the end of the registrants fiscal year
end and, upon such filing, to be incorporated by reference into Part III)

---

# GEHL COMPANY

_________________

# INDEX TOANNUAL REPORT
ON FORM 10-K

# For The Year Ended
December 31, 2003

|                                                                     | Page
|-------------------------------------------------------------------- | ----
|Part I                                                               |     
|Item 1      Business                                                 | 1   
|Item 2      Properties                                               | 7   
|Item 3      Legal Proceedings                                        | 8   
|Item 4      Submission of Matters to a Vote of Security Holders      | 9   
|Executive Officers of the Registrant                                 | 9   
|Part II                                                             
|Item 5      Market for Registrant's Common Equity and Related       
|Shareholder Matters                                                  | 10  
|Item 6      Selected Financial Data                                  | 11  
|Item 7      Management's Discussion and Analysis of Financial       
|Condition and Results of Operations                                  | 12  
|Item 7A   Quantitative and Qualitative Disclosures About Market Risk | 21  
|Item 8      Financial Statements and Supplementary Data              | 22  
|Item 9      Changes in and Disagreements with Accountants           
|on Accounting and Financial Disclosure                               | 49  
|Item 9A   Controls and Procedures                                    | 49  
|Part III                                                            
|Item 10   Directors and Executive Officers of the Registrant         | 50  
|Item 11   Executive Compensation                                     | 50  
|Item 12   Security Ownership of Certain Beneficial Owners           
|and Management and Related Shareholder Matters                       | 50  
|Item 13   Certain Relationships and Related Transactions             | 50  
|Item 14   Principal Accountant Fees and Services                     | 51  
|Part IV                                                             
|Item 15   Exhibits, Financial Statement Schedules and               
|Reports on Form 8-K                                                  | 52  
|Signatures                                                           | 53  

---

# PART I

# Item 1.  Business

# Overview

Gehl
Company (the Company or Gehl) designs, manufactures, sells and
finances equipment used in the light construction equipment and the agriculture equipment
industries. Construction equipment is comprised of skid loaders, telescopic handlers,
asphalt pavers, compact excavators, compact track loaders, all-wheel-steer loaders,
compact loaders and attachments and is sold to contractors, sub-contractors, owner
operators, rental stores and municipalities. The Company generally markets its
construction equipment under the Gehl® and Mustang® brand names. Agriculture
equipment is sold to customers in the dairy and livestock industries, and includes a broad
range of products including haymaking, forage harvesting, materials handling (skid
loaders, telescopic handlers, compact excavators, compact track loaders, all-wheel-steer
loaders, compact loaders and attachments), manure handling and feedmaking equipment. The
Company believes that it is one of the largest non-tractor agriculture equipment
manufacturers in North America. In addition, the Company launched a new attachment
business, Compact Equipment Attachments, Inc., in July 2001. The Company was founded in
1859 and was incorporated in the State of Wisconsin in 1890.

Effective
January 1, 2002, the Company began accounting for its investment in a German distribution
operation (Gehl Europe) as a consolidated subsidiary as a result of the
Companys controlling influence on the operations of Gehl Europe as of such date.
Prior to January 1, 2002, the Company accounted for its investment in Gehl Europe under
the equity method.

During
2002, the Company substantially completed a restructuring plan that was commenced in the
third quarter of 2001 in order to reduce costs through several major plant rationalization
initiatives which included consolidating certain operations. Under these initiatives, the
Company closed its manufacturing facility in Lebanon, Pennsylvania and outsourced the
manufacturing of most products. The Company also transferred the manufacturing of its
Mustang line of skid steer loaders from its facility in Owatonna, Minnesota to its skid
steer facility in Madison, South Dakota. Construction equipment is now manufactured in two
South Dakota facilities and Agricultural equipment is manufactured in plants in Wisconsin
and South Dakota. The Lebanon, Pennsylvania facility was sold in 2003.

The
Company intends that certain matters discussed in this Annual Report on Form 10-K are
forward-looking statements intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact, including statements regarding the
Companys future financial position, business strategy, targets and capital spending,
and the plans and objectives of management for future operations, are forward-looking
statements. When used in this Annual Report on Form 10-K, words such as the Company
believes, anticipates, expects or
estimates or words of similar meaning are generally intended to identify
forward-looking statements. These forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties, assumptions and other
factors, some of which are beyond the Companys control, that could cause actual
results to differ materially from those anticipated as of the date of the filing hereof.
Factors that could cause such a variance include, but are not limited to, any interruption
in the expected general economic recovery, unanticipated changes in capital market
conditions, the Companys ability to implement successfully its strategic
initiatives, market acceptance of newly introduced products, the cyclical nature of the
Companys business, the Companys and its customers access to credit,
competitive pricing, product initiatives and other actions taken by competitors,
disruptions in production capacity, excess inventory levels, the effect of changes in laws
and regulations (including government subsidies and international trade regulations),
technological difficulties, changes in currency exchange rates, the Companys ability
to secure sources of liquidity necessary to fund its operations, changes in environmental
laws, the impact of any acquisition effected by the Company, unanticipated difficulties or
charges arising out of the proposed sale of the Companys Owatonna, Minnesota
facility, and employee and labor relations. Shareholders, potential investors, and other
readers are urged to consider these factors in evaluating the forward-looking statements
and are cautioned not to place undue reliance on such forward-looking statements. The
forward-looking statements included in this Annual Report on Form 10-K are only made as of
the date of the filing hereof, and the Company undertakes no obligation to publicly update
such forward-looking statements to reflect subsequent events or circumstances.

1

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# Business Segments

The
Company operates in two business segments, construction equipment and agricultural
equipment. The following table shows certain information relating to the Companys
segments:

|                                  
|----------------------------------
|2001                              
|Amount                            
|Net sales:  Construction Equipment
|Agricultural Equipment            
|                                  
|Total                             
|                                  
|Income (loss) from                
|operations:                       
|Construction Equipment            
|Agricultural Equipment            
|                                  
|Total                             
|                                  

On
September 26, 2001, the Company adopted several major plant rationalization initiatives to
improve the Companys profitability by consolidating certain operations. Under these
initiatives, the Company announced it would close its manufacturing facility in Lebanon,
Pennsylvania (Lebanon) and transfer production to other locations. The Company
also indicated it would transfer the manufacturing of its Mustang line of skid steer
loaders from its facility in Owatonna, Minnesota (Owatonna) to its skid steer
facility in Madison, South Dakota. A $4.3 million charge related to the plant
rationalization initiatives was recorded in the third quarter of 2001 in accordance with
accounting principles generally accepted in the United States of America. Of this charge,
$2.8 million and $1.5 million related to the construction and agricultural equipment
segments, respectively.

The
manufacturing consolidations announced on September 26, 2001 were completed during 2002.
During 2002, the Company expensed $1.0 million of other charges related to the plant
rationalization initiatives. These charges were required to be expensed when incurred and
were not included in the original reserve. Of the $1.0 million expense recorded in 2002,
$0.5 million and $0.5 million related to the construction and agricultural segments,
respectively.

During
September and October of 2003, the Company entered into agreements to sell both the
Lebanon and Owatonna facilities and certain related assets. The Company recorded a $3.6
million asset impairment charge to adjust the carrying value of the Lebanon and Owatonna
facilities and assets to their net realizable value based on the pending sales. Of the
$3.6 million charge, $1.2 million and $2.4 million related to the construction equipment
and agricultural equipment segments, respectively. The Company sold the Lebanon facility
in December 2003. The sale of the Owatonna facility, which was scheduled to close in
December 2003, did not occur as the Company expected. The Company continues to actively
pursue the sale of the Owatonna facility. In addition to the impairment charge, the
Company expensed $0.5 million of other charges related to the plant rationalization
initiatives during 2003. Of the $0.5 million expense recorded in 2003, $0.3 million and
$0.2 million related to the construction and agricultural segments, respectively.

2

---

The
Company had no intersegment sales or transfers during the years set forth above. For
segment information with respect to identifiable assets, depreciation/amortization and
capital expenditures for the construction equipment and agricultural equipment markets,
see Note 16 of Notes to Consolidated Financial Statements included in Part II,
Item 8 of this Form 10-K.

# Construction Equipment

Products

Construction
equipment is marketed in the following seven product areas:

| | 1. | Skid
Loaders  The Companys skid loader line consists of a broad
               range of products offered through the Gehl and Mustang brands. The skid
loader                line features a choice of hand-operated T-bar controls, hand only
or hand and                foot controls. The skid loader, with its fixed-wheel
four-wheel drive, is used                principally for material handling duties. The
skid loader may also be used with                a variety of attachments, including
dirt, snow and cement buckets, pallet forks                and hydraulically-operated
devices such as cold planers, backhoes, brooms,                trenchers, snowblowers,
industrial grapples, tree diggers, concrete breakers,                augers and many
more.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Telescopic
Handlers  The Companys telescopic handler line consists                of a
broad range of products offered through the Gehl and Mustang brands. These
               telescopic handlers are designed to handle heavy loads (up to 12,000
pounds)                reaching horizontally and vertically (up to 55 ft.) for use by a
variety of                customers, including masons, roofers, building contractors and
farmers.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3. | Asphalt
Pavers  Two models of Power Box® pavers are marketed by Gehl.
               These pavers allow variable paving widths from 4 1/2 to 13 feet and are
used for                both commercial and municipal jobs such as county and municipal
road, sidewalk,                golf cart path, jogging trail, parking lot, driveway,
trailer court and tennis                court preparation.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4. | Compact
Excavators  The Companys compact excavator line consists of                a
broad range of products offered through the Gehl and Mustang brands. The units
               range in size from 1.5 metric tons to 11.5 metric tons. All units come
standard                with auxiliary hydraulics. An industry exclusive frame leveling
system is                offered on a number of models. These units can be equipped with
a wide variety                of attachments.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5. | Compact-loader
 Gehl offers an articulated unit, powered by a 20                horsepower engine.
It is one of the only compact-loaders offered in the industry                where the
operator is seated on the unit. Offered with a wide variety of
               attachments, the principal applications for this product are landscaping,
               nursery and material handling.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6. | All-wheel-steer
Loaders  The Company offers multiple all-wheel-steer                loaders through
the Gehl and Mustang brands with either conventional or                telescopic booms.
The units range from 60 horsepower to 83 horsepower and are                used in
general construction, and by building contractors and material                producers.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7. | Compact
Track Loaders  The Company offers multiple compact track loaders
               through the Gehl and Mustang brands. With a dedicated rubber track, these
               machines are especially useful in soft or muddy conditions. They offer low
               ground pressure and high floatation and are used in landscaping, nursery
and                general construction applications.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Marketing and Distribution

The
Company maintains a separate distribution system for construction equipment. The Company
markets its construction equipment in North America through approximately 270 independent
dealers (with 1016 outlets) and worldwide through approximately 85 distributors. The
Company has no Company-owned dealers, and its dealers may sell equipment produced by other
construction equipment manufacturers. The top ten dealers and distributors of construction
equipment accounted for approximately 13% of the Companys sales for the year ended
December 31, 2003; however, no single dealer or distributor accounted for more than 3% of
the Companys sales for that period. Sales of the construction equipment skid loader
product line accounted for more than 25% of the Companys net sales in 2001, 2002 and
2003. Sales of the construction equipment telescopic handler product line accounted for
more than 12% of the Companys net sales in 2001, 2002 and 2003.

3

---

The
Company believes that maintenance and expansion of its dealer network is important to its
success in the light construction equipment market. The Company also believes that it
needs to continue to further develop sales relationships with rental companies to meet the
demands of the changing marketplace. Various forms of support are provided for its
construction equipment dealers, including sales and service training, and, in the United
States and Canada, floor plan financing for its dealers and retail financing for both its
dealers and their customers. The construction equipment dealers in North America are also
supported by district sales managers who provide a variety of services, including
training, market evaluation, business planning, equipment demonstrations and sales,
warranty and service assistance, and regional field service representatives who assist in
training and providing routine dealer service support functions. The Company has a service
agreement with a vendor for a centralized parts distribution center located in Belvidere,
Illinois.

Industry and Competition

Gehls
construction equipment product lines face competition in each of their markets. In
general, each line competes with a small group of from seven to twelve different
companies, some of which are larger than the Company. The Company competes within the
light construction equipment markets based primarily on price, quality, service and
distribution.

The
primary markets for Gehls construction equipment outside of North America are in
Europe, Australia, Latin America, the Middle East and the Pacific Rim. The Company
believes it is a significant competitor in the skid loader market in most of these
markets.

# Agricultural Equipment

Products

Agricultural
equipment is marketed in five product areas.

| | 1. | Haymaking
 Gehls haymaking line includes a broad range of products           used to
harvest and process hay crops for livestock feed. The Company offers           disc
mowers, a wide range of pull-type disc mower conditioners, hay rakes,           windrow
mergers and variable-chamber round balers.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Forage
Harvesting  The Company believes that it currently manufactures           and sells
one of the industrys most complete lines of forage harvesting           equipment,
including forage harvesters, forage wagons and blowers.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3. | Material
Handling  This line consists of a broad range of Gehl skid           loaders,
telescopic handlers, compact excavators, compact track loaders,           all-wheel-steer
loaders and the compact-loader. The skid loader, telescopic           handler, compact
excavator, compact track loader, all-wheel-steer loader and           compact-loader
product lines are marketed by dealers who handle agricultural           equipment and by
dealers who handle construction equipment.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4. | Manure
Handling  Gehl offers a broad range of manure spreaders, including           the
Scavenger® V-Tank side-discharge manure spreader which
          incorporates a hydraulically controlled auger allowing the spreader to handle a
          wide range of semi-liquid waste products, including municipal sludge. For
          handling mostly solid manure, the Company also markets four models of
          rear-discharge box spreaders.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5. | Feedmaking
 The Company offers the Gehl Mix-All® line of grinder           mixers, a line
of mixer feeders and a feeder wagon for both mixing feed rations           and delivery
to livestock feeders.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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Marketing and Distribution

In
North America, Gehls agricultural equipment is sold through approximately 341
geographically dispersed dealers (with 405 outlets). Fifty of these dealers are located in
Canada. Agricultural equipment is also marketed through approximately 10 distributors in
Europe, the Middle East, the Pacific Rim and Latin America. The Company has no
Company-owned dealers and its dealers may sell equipment produced by other agricultural
equipment manufacturers.

It
has been and remains the Companys objective to increase the share of Gehl products
sold by a Gehl dealer. Gehl is not dependent for its sales on any specific agriculture
dealer or group of dealers. The top ten dealers and distributors in agricultural equipment
accounted for approximately 7% of the Companys sales for the year ended December 31,
2003 and no one dealer or distributor accounted for over 1% of the Companys sales
during that period. Sales of the agriculture equipment skid loader product line accounted
for more than 13% of the Companys net sales in 2001, 2002 and 2003.

The
Company provides various forms of support for its dealer network, including sales and
service training. The Company also provides floor plan and retail finance support for
products sold by its dealers in the United States and Canada.

The
agricultural equipment dealers in North America are also supported by district sales
managers who provide a variety of services, including training, market evaluation,
business planning, equipment demonstrations and sales, warranty and service assistance,
and regional field service representatives who assist in training and providing routine
dealer service support functions. The Company has a service agreement with a vendor for a
centralized parts distribution center located in Belvidere, Illinois.

Industry and Competition

The
agriculture equipment industry has seen significant consolidation and retrenchment since
1980. This has served to reduce the total number of competitors, to strengthen certain
major competitors, and to reduce the strength of certain other companies in the industry.
The Company competes within the agriculture equipment industry based primarily on products
sold, price, quality, service and distribution.

The
agriculture equipment markets in North America are highly competitive and require
substantial capital outlays. The Company has several major competitors as well as numerous
other limited line manufacturers and importers. The largest manufacturers in the
agriculture equipment industry, the Companys major competitors, generally produce
tractors and combines as well as a full line of tillage and planting equipment. Such
manufacturers also market, to varying degrees, haymaking, forage harvesting, materials
handling, manure handling and/or feedmaking equipment, the areas in which the
Companys agriculture products are concentrated. No single competitor competes with
the Company in each of its product lines. The Company believes that it is the only
non-tractor manufacturer in the industry that produces equipment in each of these product
lines. Smaller manufacturers which compete with the Company produce only a limited line of
specialty items and often compete only in regional markets.

Approximately
90% of the Companys agriculture dealers also carry the tractor and combine product
lines of a major manufacturer. In addition to selling the tractors and combines of a major
manufacturer, many of these dealers carry the major manufacturers entire line of
products, some of which directly compete with the products offered by Gehl. Dealers of
Gehls agriculture equipment also market equipment manufactured by limited line
manufacturers which compete with specific product lines offered by the Company.

The
primary markets for Gehls agriculture equipment outside of North America are in
Europe and the Pacific Rim. In these markets, the Company competes with both agriculture
equipment manufacturers from the United States, some of which have manufacturing
facilities in foreign countries, and foreign manufacturers. The Company does not believe,
however, that it is presently a significant competitor in any of these foreign markets.

# Backlog

The
backlog of unfilled equipment orders (which orders are subject to cancellation in certain
circumstances) as of December 31, 2003 was $38.9 million versus $20.9 million at December
31, 2002. Virtually all orders in the backlog at December 31, 2003 are expected to be
shipped in 2004.

5

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# Floor Plan and Retail
Financing

Floor Plan Financing

The
Company, as is typical in its industries, generally provides floor plan financing for its
dealers. Products shipped to dealers under the Companys floor plan financing program
are recorded by the Company as sales and the dealers obligations to the Company are
reflected as accounts receivable.

The
Company provides interest-free floor plan financing to its dealers, for construction
equipment for varying periods of time generally up to six months and for agriculture
equipment generally up to nine months. Dealers who sell products utilizing floor plan
financing are required to make immediate payment for those products to the Company upon
sale or delivery to the retail customer. At the end of the interest-free period, if the
equipment remains unsold to retail customers, the Company generally charges interest to
the dealer at approximately 3% above the prime rate or on occasion provides an
interest-free extension of up to three months upon payment by the dealer of a curtailment
of 25% of the original invoice price to the dealer. This type of floor plan equipment
financing accounts for approximately 80% of Gehls dealer accounts receivable, with
all such floor planned receivables required to be secured by a first priority security
interest in the equipment sold.

Retail Financing

The
Company also provides retail financing primarily to facilitate the sale of equipment to
end users. Additionally, a number of dealers purchase equipment which is held for rental
to the public. The Company also provides retail financing to such dealers in connection
with these purchases. Retail financing in the United States is provided by the Company
primarily through Gehl Finance®, the Companys finance division. Retail financing
is provided in Canada by a third party at rates subsidized by the Company.

The
Company maintains arrangements with third parties pursuant to which the Company sells,
with recourse, the Companys retail finance contracts. The finance contracts require
periodic installments of principal and interest over periods of up to 60 months; interest
rates are based on market conditions. The majority of these contracts have maturities of
12 to 48 months. The Company continues to service the finance contracts it sells,
including cash collections. For additional discussion, see Managements
Discussion and Analysis of Financial Condition and Results of Operations  Liquidity
and Capital Resources  Sales of Finance Contracts Receivable, included in Part
II, Item 7 of this Form 10-K and Note 2 of Notes to Consolidated Financial
Statements, included in Part II, Item 8 of this Form 10-K.

# Employees

As
of December 31, 2003, the Company had 796 employees, of which 458 were hourly employees
and 338 were salaried employees. At the production facilities in West Bend, Wisconsin, one
of three Gehl production facilities, 136 hourly employees are covered by a collective
bargaining agreement with P.A.C.E. (formerly the United Paperworkers International Union)
which expires December 15, 2006. None of the remaining employees of the Company are
represented by unions. There have been no labor-related work stoppages at the
Companys facilities during the past thirty years.

# Manufacturing

During
2002, the Company expanded its South Dakota skid loader manufacturing facility in order to
accommodate the transfer of Mustang skid loader production previously manufactured in
Owatonna, Minnesota. The Company believes that its present manufacturing facilities will
be sufficient to provide adequate capacity for its operations in 2004.

Component
parts needed in the manufacture of the Companys equipment are primarily produced by
the Company. The Company obtains raw materials (principally steel), component parts that
it does not manufacture (mostly engines and hydraulics) and supplies from third party
suppliers. Substantially all such materials and components used are available from a
number of sources. The Company is not dependent on any supplier that cannot be replaced
and has not experienced difficulty in obtaining necessary purchased materials.

6

---

In
addition to the equipment it manufactures, the Company markets equipment acquired from
third party suppliers. Products acquired from these suppliers accounted for approximately
21% of the Companys net sales in 2003.

# Research and Development

The
Company attempts to maintain and strengthen its market position through internal new
product development and incremental improvements to existing products. The Companys
research and development is devoted to developing new products that meet specific customer
needs and to devising incremental improvements to existing products. Research and
development performed by the Company includes the designing and testing of new and
improved products as well as the fabrication of prototypes. The Company expended
approximately $2.6 million, $3.2 million and $3.0 million on research and development for
the years ended December 31, 2003, 2002 and 2001, respectively.

# Patents and Trademarks

The
Company possesses rights under a number of domestic and foreign patents and trademarks
relating to its products and business. While the Company considers the patents, trademarks
and service marks important in the operation of its business, including the Gehl®
name, the Mustang® name, the Dynalift® name, the EDGE® name and the group of
patents relating to the Scavenger® manure spreader, the business of the Company is not
dependent, in any material respect, on any single patent or trademark or group of patents
or trademarks.

# Item 2.  Properties

The
following table sets forth certain information as of December 31, 2003, relating to the
Companys principal manufacturing facilities. See Managements Discussion
and Analysis of Financial Condition and Results of Operations  Liquidity and Capital
Resources  Capital Expenditures, included in Part II, Item 7 of this Form
10-K.

|                
|----------------
|West Bend, WI   
|                
|                
|                
|Madison, SD     
|                
|                
|                
|Yankton, SD     
|                
|Owatonna, MN (1)

(1)                 The
Company ceased manufacturing at this plant in conjunction with its plant
          rationalization initiatives announced in September 2001. This plant is
currently           for sale.

The
Company also has a five year service agreement with a vendor for a centralized parts
distribution center located in Belvidere, Illinois.

7

---

# Item 3.  Legal Proceedings

The
Company is a defendant from time to time in actions for product liability and other
matters arising out of its ordinary business operations. The Company believes that the
actions presently pending will not have a material adverse effect on its consolidated
financial position or results of operations. To the Companys knowledge, there are no
material legal proceedings to which any director, officer, affiliate or more than 5%
shareholder of the Company (or any associate of the foregoing persons) is a party adverse
to the Company or any of its subsidiaries or has a material interest adverse to the
Company or its subsidiaries.

8

---

# Item 4.  Submission of
Matters to a Vote of Security Holders

No
matters were submitted to a vote of security holders during the quarter ended December 31,
2003.

# Executive Officers of
the Registrant.

Set
forth below is certain information concerning the executive officers of the Company as of
February 1, 2004:

|Name, Age and Position             | Business Experience                                    
|---------------------------------- | -------------------------------------------------------
|William D. Gehl, 57,               | Mr. Gehl has served as Chairman of the Board of        
|Chairman of the Board of Directors | Directors of the Company since April, 1996 and as Chief
|and Chief Executive Officer        | Executive Officer of the Company since November, 1992. 
|                                   | Mr. Gehl served as President of the Company from       
|                                   | November, 1992 to April, 2003 and has served as a      
|                                   | director of the Company since 1987.                    
|Malcolm F. Moore, 53,              | Mr. Moore joined the Company as Executive Vice         
|President and                      | President and Chief Operating Officer in August, 1999. 
|Chief Operating Officer            | Mr. Moore was elected President and Chief Operating    
|                                   | Officer in April, 2003                                 
|Kenneth P. Hahn, 46,               | Mr. Hahn joined the Company as Corporate Controller in 
|Vice President of Finance and      | April, 1988. Mr. Hahn was appointed Vice President of  
|Chief Financial Officer            | Finance in February, 1997 and became Chief Financial   
|                                   | Officer in January, 1999.                              
|Daniel M. Keyes, 35,               | Mr. Keyes joined the Company as Vice President Sales   
|Vice President Sales and Marketing | and Marketing in December 2000. From 1996 until        
|                                   | joining the Company, Mr. Keyes held a variety of senior
|                                   | marketing management positions, most recently,         
|                                   | Director, Strategic Accounts, with CNH Global NV (a    
|                                   | manufacturer of agricultural and construction          
|                                   | equipment).                                            
|Michael J. Mulcahy, 57,            | Mr. Mulcahy has served as General Counsel of the       
|Vice President, Secretary          | Company since 1974 and became Secretary in 1977 and a  
|and General Counsel                | Vice President in 1986.                                
|Kenneth H. Feucht, 55              | Mr. Feucht has served as Vice President of Human       
|Vice President of Human Resources  | Resources since May, 2002. Mr. Feucht was Director of  
|                                   | Human Resources from 1999 to 2002 and Manager of Human 
|                                   | Resources from 1993 to 1999.                           

All
officers of the Company are elected annually by the Board of Directors following the
Annual Meeting of Shareholders. The Company has an employment agreement with William D.
Gehl, pursuant to which he is to serve as Chief Executive Officer of the Company through
the expiration of the agreement on June 13, 2004.

9

---

# PART II

# Item 5.  Market for
Registrants Common Equity and Related Shareholder Matters

Pursuant
to the terms of the Gehl Company Director Stock Grant Plan, each of the non-employee
directors of the Company (i.e., Messrs. N.C. Babson, T. J. Boldt, J. T. Byrnes, F.
J. Fotsch, K. Helletzgruber, J. W. Splude and H. Viets) received on December 31, 2003 a
grant of shares of Company common stock as part of their annual retainer fee. An aggregate
of 2,478 shares of Company common stock were granted under the Director Stock Grant Plan.
These shares were issued in transactions exempt from registration under Section 4(2) of
the Securities Act of 1933, as amended.

The
Company did not declare or pay any dividends in 2003 or 2002. A summary of the high and
low prices of Gehls common stock by quarter follows.

|              
|--------------
|Price Range   
|2002          
|First Quarter 
|Second Quarter
|Third Quarter 
|Fourth Quarter
|              
|Year          
|              

10

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# Item 6.  Selected
Financial Data

|Five Year Financial Summary                     
|------------------------------------------------
|Dollars in Thousands, Except Per Share Data     
|Summary of Operations                           
|Net sales                                       
|Gross profit                                    
|Strategic review process costs                  
|Asset impairment and other restructuring costs  
|Income from operations                          
|Interest expense                                
|Income before income taxes                      
|Net income                                      
|                                                
|Financial Position at December 31               
|Current assets                                  
|Current liabilities                             
|Working capital                                 
|Accounts receivable - net                       
|Finance contracts receivable - net              
|Inventories                                     
|Property, plant and equipment - net             
|Total assets                                    
|Long-term debt                                  
|Total debt                                      
|Shareholders' equity                            
|                                                
|Common Share Summary                            
|Diluted net income per share                    
|Basic net income per share                      
|Dividends per share                             
|Book value per share                            
|Shares outstanding at year-end                  
|                                                
|Other Financial Statistics                      
|Capital expenditures                            
|Depreciation                                    
|Current ratio                                   
|Percent total debt to total capitalization      
|Net income as a percent of net sales            
|After-tax return on average shareholders' equity
|Employees at year-end                           
|Common stock price range                        
|                                                

11

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# Item 7.  Management's
Discussion and Analysis of Financial Condition and Results of Operations

# Overview

The
Companys net income in 2003 was $2.6 million, or $.49 per diluted share, compared
with $1.0 million, or $.19 per diluted share, in 2002. The 2003 net income included an
after-tax asset impairment charge of $2.4 million, or $.44 per diluted share, and an
after-tax charge of $0.3 million, or $.06 per diluted share, relating to the
Companys previously announced plant rationalization initiatives. In addition, 2003
net income included a favorable tax adjustment of $0.4 million, or $.07 per diluted share,
relating to the finalization of prior year tax returns during the fourth quarter. The 2002
net income included an after-tax charge of $0.6 million, or $.11 per diluted share,
relating to the Companys plant rationalization initiatives.

Net
sales in 2003 of $244.4 million were 5% above the $232.6 million in 2002. Construction
equipment segment net sales in 2003 of $155.5 million were 15% above 2002 levels, while
agricultural equipment segment net sales in 2003 of $88.9 million were 9% below 2002
levels. The construction equipment segment comprised 64% of Company net sales in 2003
versus 58% in 2002. The agricultural equipment segment was 36% of Company net sales in
2003 versus 42% in 2002.

Income
from operations in 2003 was $4.9 million, with the construction equipment segment
accounting for $7.9 million, while the agricultural equipment segment incurred an
operating loss of $3.0 million. 2003 income from operations includes a $3.6 million asset
impairment charge and $0.5 million of other charges relating to the Companys plant
rationalization initiatives. Of the $4.1 million in charges, $1.5 million was included in
construction equipment segment income from operations and $2.6 million was included in the
agricultural equipment segment loss from operations. Interest expense in 2003 decreased
$0.4 million, to $3.6 million. Other income, net, consisting primarily of foreign currency
transaction gains (losses) and the costs of selling finance contracts receivable, was $0.3
million in 2003, a $1.8 million improvement from 2002 other expense, net of $1.5 million.

The
Companys total debt was reduced to $26.7 million at December 31, 2003 from $57.9
million at December 31, 2002. The reduction was primarily due to cash provided by
operating activities of $31.1 million during 2003. The Companys ratio of debt to
total capital was 21.4% at December 31, 2003, as compared with 37.6% at December 31, 2002.

# Asset Impairment and
Other Restructuring Costs

On
September 26, 2001, the Company adopted several major plant rationalization initiatives to
improve the Companys profitability by consolidating certain operations. These
initiatives were completed during 2002 as the Company closed its manufacturing facility in
Owatonna, Minnesota (Owatonna) and transferred production of Mustang skid
loaders to the Companys skid steer loader facility in Madison, South Dakota. In
addition, the Companys manufacturing facility in Lebanon, Pennsylvania
(Lebanon) was closed and the production of certain products formerly
manufactured at that facility was outsourced.

During
September and October of 2003, the Company entered into agreements to sell both the
Lebanon and Owatonna facilities and certain related assets and anticipated completion of
the sales of the facilities by December 31, 2003. The Company recorded a $3.6 million
asset impairment charge in the quarter ended September 27, 2003 to adjust the carrying
value of these facilities and assets to their net realizable value based on the pending
sales. Of the $3.6 million charge, $1.2 million and $2.4 million related to the
construction equipment and agricultural equipment segments, respectively. The Company sold
the Lebanon facility in December 2003 and defeased the industrial development bonds
associated with this facility. The sale of the Owatonna facility, which was scheduled to
close in December 2003, did not occur as the Company expected. There were no further
adjustments to the Companys balance sheet or results of operations as a result of
not completing the sale. The Company continues to actively pursue the sale of the Owatonna
facility. The net realizable value of the Owatonna facility and related assets has been
classified as a current asset at December 31, 2003 as the Company anticipates selling the
facility during 2004.

During
the years ended December 31, 2003 and 2002, the Company expensed $0.5 million and $1.0
million, respectively, of other charges related to the plant rationalization initiatives.

12

---

Through
December 31, 2003, the Company incurred total asset impairment, restructuring and other
related charges of $9.3 million related to the plant rationalization initiatives.

# Accounting for Goodwill

Effective
January 1, 2002, the Company adopted the provisions of Statement of Financial Accounting
Standards No. 142 (SFAS No. 142), Goodwill and Other Intangible
Assets, which states that goodwill and intangible assets deemed to have indefinite
lives are no longer subject to amortization; however, must be tested for impairment at
least annually. Upon adoption, the Company discontinued the amortization of goodwill. The
2001 results included approximately $476,000 of goodwill amortization expense.

# Consolidation of Gehl
Europe

Effective
January 1, 2002, the Company began accounting for its investment in a German distribution
operation (Gehl Europe) as a consolidated subsidiary, as a result of the
Companys controlling influence on the operations of Gehl Europe as of such date.
Prior to January 1, 2002, the Company accounted for its investment in Gehl Europe under
the equity method.

# Results of Operations

# 2003 vs. 2002

Net Sales

|2003                  
|----------------------
|Construction Equipment
|Agricultural Equipment
|                      
|Total                 
|(% of total)          
|Construction Equipment
|Agricultural Equipment
|                      

Net
sales for 2003 were $244.4 million compared to $232.6 million in 2002, an increase of 5%.
Gehl construction equipment segment net sales were $155.5 million in 2003, a 15% increase
from 2002 net sales of $135.1 million. The increase in construction equipment segment net
sales was primarily due to strong demand throughout the year for compact track loaders, a
new product line introduced in the second quarter of 2002, as well increased demand for
telescopic handlers and compact excavators in the second half of the year. In addition,
the Companys attachment business and European subsidiary, Gehl Europe, had increased
shipments that benefited the overall construction equipment segment net sales.

Gehl
agricultural equipment segment net sales were $88.9 million in 2003, down 9% from $97.5
million in 2002. Shipments of agricultural implements and skid loaders during the first
nine months of 2003 were adversely impacted by low milk prices. Increases in milk prices
during the 2003 third quarter resulted in increased agricultural implement shipments in
the fourth quarter, partially offsetting the reduced sales in the first nine months of
2003. In addition, increased sales by the Companys attachment business, as well as
higher full year shipments of compact track loaders, introduced in the second quarter of
2002, partially offset reduced agricultural implement and skid loader shipments.

13

---

Of
the Companys total net sales reported for 2003, $50.5 million were made outside of
the United States compared with $43.9 million in 2002. The increase in exports was due
primarily to the increased sales in Canada and Europe.

Gross Profit

Gross
profit in 2003 was $51.4 million compared to $48.8 million in 2002. Gross profit as a
percentage of net sales (gross margin) was 21.0% in both 2003 and 2002.

Gross
margin for the construction equipment segment was 23.3% in 2003 compared with 21.3% in
2002. The increase in the gross margin for the construction equipment segment was
primarily the result of improved manufacturing efficiencies, increased levels of
production, favorable effects of the 2002 Owatonna, Minnesota plant closure and various
impacts associated with the mix of products shipped. Gross margin for the agricultural
equipment segment was 17.1% in 2003 compared with 20.5% in 2002. The decrease in
agricultural equipment gross margin was due to significant competitive pressure resulting
in higher sales discounts and sales incentives, reduced production levels, as well as a
less favorable mix of product shipments.

Selling, General and
Administrative Expenses

Selling,
general and administrative expenses were $42.5 million, or 17.4% of net sales, in 2003
compared to $42.7 million, or 18.4% of net sales, in 2002. The decrease in selling,
general and administrative expenses as a percentage of net sales was due to a 5% increase
in net sales from 2002 combined with consistent levels of expenses between 2003 and 2002.

Income (Loss) from
Operations

|2003                  
|----------------------
|Construction Equipment
|Agricultural Equipment
|                      
|Total                 
|                      

The
decrease in income from operations in 2003 was primarily due to $4.1 million of charges
relating to the Companys previously announced plant rationalization initiatives,
which increased $3.0 million from the $1.1 million of charges in 2002. Partially
offsetting the effect of these charges was income generated from increased net sales
during 2003.

Construction
equipment segment income from operations increased in 2003 to $7.9 million from $4.3
million in 2002 primarily due to the 15% increase in net sales from 2002 and the increase
in gross margin to 23.3% from 21.3% in 2002. The favorable impact of the increase in net
sales and gross margin improvement were partially offset by $1.5 million in charges
related to the Companys plant rationalization initiatives, which increased $1.0
million from $0.5 million in 2002. The agricultural equipment segment incurred a loss from
operations of $3.0 million in 2003 compared to income from operations of $0.9 million in
2002. Reduced agricultural segment net sales, a reduction in gross margin and $2.6 million
in charges related to the Companys plant rationalization initiatives, which
increased $2.1 million from $0.5 million in 2002, contributed to the 2003 loss from
operations.

Interest Expense

Interest
expense decreased $0.4 million, to $3.6 million in 2003 compared to $4.1 million in 2002.
The decrease in interest expense was due to decreased debt levels during 2003, as debt was
$26.7 million at December 31, 2003 compared to $57.9 million at December 31, 2002. The
majority of the debt reduction occurred during the fourth quarter of 2003 as the Company
provided $31.1 million of cash flow from operations in the quarter.

14

---

Other income (expense),
net

The
Company benefited from other income, net of $0.3 million in 2003 compared to other
expense, net of $1.5 million in 2002. This difference resulted from reduced costs of
selling retail finance contracts due to lower discount rates negotiated with third party
purchasers of such contracts, in part, due to the overall lower interest rate environment
and more favorable foreign exchange transaction gains in 2003 versus 2002.

Provision for Income
Taxes

The
Companys effective income tax rate was 21.6% in 2003 and 35.0% in 2002. The decrease
in the effective tax rate is primarily due to the favorable impact of a $0.4 million tax
adjustment relating to the finalization of prior year tax returns during the fourth
quarter of 2003.

Net Income

Net
income increased to $2.6 million in 2003 from $1.0 million of net income in 2002. Diluted
earnings per share were $.49 in 2003 compared to $.19 in 2002. Net income in 2003 includes
an after-tax impairment charge of $2.4 million, or $.44 per diluted share, and an
after-tax charge of $0.3 million, or $.06 per diluted share, relating to the
Companys plant rationalization initiatives. In addition, 2003 net income was
favorably impacted by a $0.4 million, or $.07 per diluted share, tax adjustment related to
finalization of prior year tax returns during the fourth quarter. Net income in 2002
includes an after-tax charge of $0.6 million, or $.11 per diluted share, relating to the
Companys plant rationalization initiatives. No dividends were declared in either
2003 or 2002 on the Companys common stock.

# 2002 vs. 2001

Net Sales

Net
sales for 2002 were $232.6 million compared to $240.4 million in 2001, a decrease of 3%.
Excluding $10 million of net sales resulting from the initial consolidation of Gehl
Europe, net sales decreased 7% from 2001 levels.

Construction
equipment segment net sales were $135.1 million in 2002 compared to $122.3 million in
2001, an increase of 10%. Excluding $10 million of net sales resulting from the initial
consolidation of Gehl Europe, net sales increased 2% from 2001 levels. Sales of the
compact track loaders were strong since their introduction in the second quarter of 2002.
In addition, construction equipment segment net sales in 2002 benefited from the
introduction of all-wheel-steer loaders in the 2002 third quarter, contributions from
telescopic handlers and compact excavator models sold through the Mustang distribution
channel and net sales from the Companys new attachment business. These increases in
construction equipment segment net sales more than offset the reduction in telescopic
handler shipments resulting from the continuing downward trend in that market.

Agricultural
equipment segment net sales were $97.5 million in 2002, compared to $118.1 million in
2001, a decrease of 17%. Agricultural implement net sales were adversely impacted by the
significant decline in milk prices as well as drought conditions in certain regions of the
United States. Sales of the compact track loaders introduced in the 2002 second quarter,
the introduction of all-wheel-steer loaders in the 2002 third quarter, increased shipments
of compact excavators to select rural equipment dealers, and increased sales from the
Companys new attachment business partially offset reduced implement and skid loader
net sales in the agricultural segment.

Of
the Companys total net sales reported for 2002, $43.9 million were made outside of
the United States compared with $33.9 million in 2001. The increase in exports was due
primarily to the initial consolidation of Gehl Europe.

Gross Profit

Gross
profit in 2002 was $48.8 million compared to $53.3 million in 2001. Gross profit as a
percent of net sales decreased in 2002 to 21.0% from 22.2% in 2001.

15

---

Construction
equipment gross profit as a percent of net sales for 2002 increased to 21.3% from 20.6% in
2001. The increase in the construction equipment gross margin was primarily due to lower
levels of discounts and sales incentives associated with the mix of products shipped as
well as improved manufacturing efficiencies. Gross profit as a percent of net sales for
agriculture equipment decreased to 20.5% for 2002 from 23.8% for 2001. The decrease in the
agricultural equipment segment gross margin was due to significant competitive pressure
resulting in higher sales discounts and sales incentives, reduced production volume and a
less favorable mix of product shipments.

Operating Expenses

Selling,
general and administrative expenses were $42.7 million, or 18.4% of net sales, in 2002, an
increase from $39.6 million, or 16.5% of net sales, in 2001. The increase was primarily
due to the consolidation of Gehl Europe effective January 1, 2002 and expenses associated
with the Companys attachment business that was launched in July 2001. These costs,
combined with a lower level of net sales during 2002, contributed to the Companys
increased selling, general and administrative expenses as a percentage of net sales.
Assuming the Company had adopted SFAS No. 142 on January 1, 2001, selling, general and
administrative expenses for 2001 would have been $39.1 million.

Income from Operations

Due
to lower net sales volume, decreased gross margin, and increased selling, general and
administrative expenses, income from operations in 2002 declined from 2001 levels.
Construction equipment segment income from operations increased in 2002 to $4.3 million
from $2.2 million in 2001. The increase was primarily due to a reduction in charges
related to the Companys plant rationalization initiatives from $3.0 million in 2001
to $0.5 million in 2002. Agriculture equipment segment income from operations decreased in
2002 to $0.9 million from $6.7 million in 2001 due primarily to the impact of reduced
agriculture sales volume and a reduction in gross margin resulting from competitive market
conditions and decreased production levels.

Interest Expense

Interest
expense decreased $0.2 million, to $4.1 million in 2002 compared to $4.3 million in 2001.
Average debt outstanding was $71.5 million during 2002 versus $61.0 million in 2001. The
increase in average debt was due to increased working capital requirements and the initial
consolidation of Gehl Europe during 2002. The average interest rate paid by the Company
declined to approximately 5.6% during 2002 versus 6.5% in 2001.

Other (expense) income,
net

Other
expense, net decreased $1.6 million to $1.5 million in 2002 from $3.1 million in 2001.
This decrease was primarily the result of a $1.5 million decline in the costs of selling
finance contracts due to lower discount rates required by third party purchasers of such
contracts, in light of the general downward trend of overall interest rates, as well as a
reduction in the amount of contracts sold compared to 2001.

Provision for Income Taxes

The
Companys effective income tax rate of 35.0% for 2002 was unchanged from 2001.

Net Income

Net income
in 2002 was $1.0 million compared to $2.3 million of net income in 2001. Diluted earnings
per share were $.19 in 2002 compared to $.42 in 2001. Assuming the Company had adopted
SFAS No. 142 on January 1, 2001, net income for 2001 would have been $2.8 million. Net
income in 2002 included $0.6 million, or $.11 per diluted share, of charges related to the
Companys plant rationalization initiatives. Net income in 2001 included $3.1
million, or $.57 per diluted share, of charges related to the Companys plant
rationalization project and the strategic review process completed during 2001. No
dividends were declared in either 2002 or 2001 on the Companys common stock.

16

---

# Liquidity and Capital
Resources

Working Capital

The
Companys working capital decreased to $83.3 million at December 31, 2003 from $102.6
million twelve months earlier. The decrease was primarily the result of decreases in
inventories (see below) and accounts receivable (see below) and increases in accounts
payable and other current liabilities. The increase in accounts payable was primarily due
to the timing of scheduled payments resulting from a change in the mix of vendors from the
year-ago period. The increase in other current liabilities is primarily due to a $5.3
million increase in pension payments expected to be paid within 12 months of the
respective balance sheet dates.

Accounts Receivable

The
Companys net accounts receivable decreased $5.2 million during 2003. Agricultural
equipment segment accounts receivable at year-end 2003 decreased $9.5 million from a year
earlier, while construction equipment segment accounts receivables increased $4.3 million
over the same period. The decrease in agricultural equipment segment receivables is
primarily due to the strengthening of milk prices during the fourth quarter of 2003, which
resulted in equipment settlements exceeding shipments to dealers. The increased
construction equipment accounts receivable balance is primarily due to increased net sales
in the second-half of 2003.

Finance Contracts
Receivable

Finance
contracts receivable, net of reserves, decreased $2.5 million to $4.5 million at December
31, 2003. The combined portfolio of owned and sold-but-serviced finance contracts
receivable was $185.1 million at December 31, 2003 as compared to $161.7 million at
year-end 2002. See Off Balance Sheet Arrangements  Sales of Finance Contracts
Receivable following.

Inventories

Inventories
at December 31, 2003 were $5.2 million lower than at December 31, 2002. Continued focus on
improving inventory flow management, benefits from the completion of the Companys
plant rationalization initiatives and production and purchasing adjustments made in an
attempt to maintain inventory levels to meet current market demand all contributed to the
reduction in inventory levels during 2003.

Capital Expenditures

|2003                
|--------------------
|Capital Expenditures
|Depreciation        
|                    

The
Company expended $3.0 million for property, plant and equipment in 2003, the majority of
which was incurred to maintain and upgrade machinery and equipment. The Company plans to
make up to $5.0 million in capital expenditures in 2004, primarily to upgrade and maintain
machinery and equipment and enhance information technology capabilities. The Company had
no significant outstanding commitments for capital items at December 31, 2003. The Company
believes its present manufacturing facilities will be sufficient to provide adequate
capacity for its operations through 2004.

17

---

Debt and Equity

|2003                
|--------------------
|($ millions)        
|Total Debt          
|Shareholders' Equity
|% Total Debt to     
|Total Capitalization
|                    

At
December 31, 2003, shareholders equity had increased $1.9 million to $98.0 million
from $96.1 million a year earlier. This increase primarily reflected the impact of the
years net income of $2.6 million and favorable currency translation adjustments of
$1.0 million, offset by a $1.6 million reduction in other comprehensive income which
related to a minimum pension liability adjustment, net of tax.

In
September 2001, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 500,000 shares of the Companys outstanding
common stock. The Company repurchased 73,700, 63,200 and 15,000 shares in the open market
under this authorization at a cost of $729,000, $692,000 and $245,000 during 2003, 2002
and 2001, respectively. All treasury stock acquired by the Company has been cancelled and
returned to the status of authorized but unissued shares.

Borrowing Arrangements

The
Company maintains a $75 million line of credit facility (the Facility) which
expires December 31, 2004, and is subject to a borrowing base related to the
Companys accounts receivable, finance contracts receivable and inventories.
Borrowings under this Facility are classified as long-term at December 31, 2003 based on
the Companys agreement to amend the existing Facility. Under the terms of this
agreement, the expiration date of the Facility was extended to December 31, 2007 and the
line of credit will be increased to $90 million each year for the period March 1 to July
15. All other terms and provisions are similar to the current facility. The interest rate
paid on borrowings denominated in U.S. dollars is 2.5% to 2.65% above the London Interbank
Offered Rate for one-month deposits (LIBOR). Under the Facility, the Company
may borrow Canadian denominated dollars, up to U.S. $5.5 million, at an interest rate
equal to 2.5% above the Canadian one-month bankers acceptance rates. At December 31,
2003, the Company had unused borrowing capacity of $46.8 million under the Facility,
versus $24.5 million a year earlier. The Company believes it has adequate capital
resources and borrowing capacity to meet its projected capital requirements for the
foreseeable future. Requirements for working capital, capital expenditures, pension fund
contributions and debt maturities in fiscal 2004 will continue to be funded by operations
and the Companys Facility.

At
December 31, 2003, the 9% industrial development bonds, net of the debt reserve fund, were
defeased in conjunction with the December 2003 sale of the Lebanon facility.

Contractual Obligations

A
summary of the Companys significant contractual obligations as of December 31, 2003
are as follows (in thousands):

|                             
|-----------------------------
|Contractual Obligations:     
|Debt Obligations             
|Operating Leases             
|                             
|Total Contractual Obligations
|                             

18

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Off-Balance Sheet
Arrangements  Sales of Finance Contracts Receivable

The
sale of finance contracts is an important component of the Companys overall
liquidity. The Company has arrangements with several financial institutions and financial
service companies to sell with recourse its finance contracts receivable. The Company
continues to service substantially all contracts whether or not sold. At December 31,
2003, the Company serviced $185.1 million of such contracts, of which $177.8 million were
owned by third parties. Losses on finance contracts due to customer nonperformance were
$551,000 in 2003 as compared to $548,000 in 2002. As a percentage of outstanding serviced
contracts, the loss ratios were .3% in 2003 and 2002.

The
Company recorded a gain of $0.1 million in selling $121.7 million of its finance contracts
in 2003, as compared to a loss of $1.8 million in selling $103.9 million of such contracts
in 2002. The gain or loss arises primarily from the difference between the weighted
average interest rate on the contracts being sold and the interest rate negotiated with
the purchaser of the contracts. The Company believes that it will be able to arrange
sufficient capacity to sell its finance contracts for the foreseeable future.

# Accounting Pronouncements

In
January 2003, the FASB issued FASB Interpretation No. 46, Consolidation of Variable
Interest Entities, an interpretation of ARB No. 51 (FIN 46). FIN 46
clarifies the application of Accounting Research Bulletin No. 51, Consolidated
Financial Statements to certain entities in which, among others, equity investors do
not have the characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional subordinated
financial support from other parties. The consolidation provisions of FIN 46, as revised,
are effective immediately for interests created after January 31, 2003 and are effective
on March 31, 2004 for interests created before February 1, 2003. As of December 31, 2003,
the Company does not own an interest in any variable interest entities.

# Critical Accounting
Policies and Estimates

The
preparation of the Companys consolidated financial statements requires the Company
to make estimates and judgments that affect the reported amounts of assets, liabilities,
net sales and expenses. The Company bases its estimates on historical experience and on
various other assumptions that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions and materially
impact the carrying value of the assets and liabilities. The Company believes the
following accounting policies are critical to the Companys business operations and
the understanding of the Companys results of operations and financial condition.

Allowance for Doubtful
Accounts

The
Companys accounts receivable are reduced by an allowance for amounts that may be
uncollectible in the future. In circumstances where the Company is aware of a specific
customers inability to meet its financial obligations, a specific reserve for bad
debts is recorded against the accounts receivable balance to reduce the amount due to the
net amount reasonably expected to be collected. Additionally, a general percentage of past
due receivables is reserved, based on the Companys past experience of
collectibility. If circumstances change (i.e., higher than expected defaults or an
unexpected material adverse change in a major customers ability to meet its
financial obligations), estimates of the recoverability of amounts due could be reduced by
a material amount.

Inventories

Inventories
are valued at the lower of cost or market value. Cost is determined using the last-in,
first-out (LIFO) method for the majority of the Companys inventories. In valuing
inventory, management is required to make assumptions regarding the level of reserves
required to value potentially obsolete or slow moving items to the lower of cost or market
value. Inventory reserves are established taking into account inventory age and frequency
of use or sale. While calculations are made involving these factors, significant
management judgment regarding expectations for future events is involved. Future events
that could significantly influence managements judgment and related estimates
include general economic conditions in markets where the Companys products are sold,
as well as new products and design changes introduced by the Company.

19

---

Accrued Warranty

The
Company establishes reserves related to the warranties provided on its products. Specific
reserves are maintained for programs related to known machine safety and reliability
issues. When establishing specific reserves, estimates are made regarding the size of the
population, the type of program, costs to be incurred and estimated participation.
Additionally, general reserves are maintained based on the historical percentage
relationships of warranty costs to machine sales and applied to current equipment sales.
If these estimates and related assumptions change, reserve levels may require adjustment.

Accrued Product
Liability

The
Company records a general reserve for potential product liability claims based on the
Companys prior claim experience and specific reserves for known product liability
claims. Specific reserves for known claims are valued based upon the Companys prior
claims experience, including consideration of the jurisdiction, circumstances of the
accident, type of loss or injury, identity of plaintiff, other potential responsible
parties, analysis of outside counsel, and analysis of internal product liability counsel.
Actual product liability costs could be different due to a number of variables, including
decisions of juries or judges.

Goodwill Impairment

In
connection with SFAS No. 142, Goodwill and Other Intangible Assets, the
Company is required to perform goodwill impairment reviews, at least annually, using a
fair-value-based approach. The Company performs its annual impairment review as of
December 31. As part of the annual impairment review, an estimate of the fair value of the
Companys construction equipment segment (the entire carrying amount of goodwill is
allocated to the construction segment), primarily by using a discounted cash flow
analysis, is performed. Significant assumptions used in this analysis include: expected
future revenue growth rates, operating profit margins, working capital levels and a
weighted average cost of capital. Changes in assumptions could significantly impact the
estimate of the fair value of the construction equipment segment, which could result in a
goodwill impairment charge and could have a significant impact on the results of the
construction equipment segment and the consolidated financial statements.

Pension and
Postretirement Benefits

Pension
and postretirement benefit costs and obligations are dependent on assumptions used in
calculation of these amounts. These assumptions, used by actuaries, include discount
rates, expected return on plan assets for funded plans, rate of salary increases, health
care cost trend rates, mortality rates and other factors. In accordance with accounting
principles generally accepted in the United States, actual results that differ from the
actuarial assumptions are accumulated and amortized to future periods and therefore affect
recognized expense and recorded obligations in future periods. While the Company believes
that the assumptions used are appropriate, differences in actual experience or changes in
assumptions may materially effect its financial position or results of operations.

20

---

# Item 7A.  Quantitative
and Qualitative Disclosures About Market Risk

# Market Risk

The
Company is exposed to market risk from changes in interest rates as well as fluctuations
in currency. See further disclosure relating to variable rate debt under
Managements Discussion and Analysis and Results of Operations  Liquidity
and Capital Resources  Borrowing Arrangements included in Item 7 of this Form
10-K.

# Interest Rate Risk

The
Companys Facility is primarily LIBOR-based and is subject to interest rate
movements. A 10% increase or decrease in the average cost of the Companys variable
rate debt would result in a change in pre-tax interest expense of approximately $125,000
based upon borrowings outstanding at December 31, 2003.

# Commodity Risk

The
Company is exposed to fluctuations in market prices for commodities, especially steel. Due
to increasing global demand for steel, coupled with steel supply constraints, the cost of
steel has increased during the early part of 2004. At this time, the Company is unable to
predict the potential impact of rising steel costs on the cost of the Companys
products. In addition, at this time, the Company is unable to predict its ability, if any,
to increase the selling price of its products to cover such costs. The Company has
established arrangements to manage the negotiations of commodity prices and, where
possible, to limit near-term exposure to fluctuations in raw material prices.

# Currency Risk

The
Company has limited exposure to foreign currency exchange fluctuations. Certain sales are
made in Canadian dollars; however, to minimize this exposure, the Company borrows in
Canadian dollars under the Facility. The Company purchases certain inventory components
and finished goods from suppliers in Europe and Japan. To the extent the U.S. dollar
strengthens or weakens against the Euro and the Yen, the Companys purchase price
could be affected.

21

---

# Item 8.  Financial
Statements and Supplementary Data

# INDEX TO FINANCIAL
STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

|                                                                         
|-------------------------------------------------------------------------
|Financial Statements:                                                    
|Report of Management                                                     
|Report of Independent Auditors                                           
|Consolidated Balance Sheets at December 31, 2003 and 2002                
|Consolidated Statements of Income for the                                
|three years ended December 31, 2003                                      
|Consolidated Statements of Shareholders' Equity for the                  
|three years ended December 31, 2003                                      
|Consolidated Statements of Cash Flows for the                            
|three years ended December 31, 2003                                      
|Notes to Consolidated Financial Statements                               
|Page                                                                     
|Financial Statement Schedule:                                            
|Schedule II - Valuation and Qualifying Accounts for the three years ended
|December 31, 2003                                                        

All other schedules are omitted
because they are not applicable or the required information is shown in the financial
statements or notes thereto.

22

---

# Report of Management

The
management of Gehl Company is responsible for the preparation and integrity of all
financial statements and other information contained in this annual report. The financial
statements have been prepared by the Company in conformity with accounting principles
generally accepted in the United States of America appropriate in the circumstances. Such
statements necessarily include amounts based on the best estimates and judgments of
management after giving due consideration to materiality.

The
Company maintains an internal control system designed to provide reasonable assurance that
transactions are properly recorded and executed in accordance with managements
authorization and that assets are safeguarded from loss or unauthorized use. The internal
control system is augmented by careful selection and training of qualified employees,
proper division of responsibilities, and the development and dissemination of written
policies and procedures.

The
Board of Directors elects, from among its members, an Audit Committee, consisting entirely
of outside directors, which is responsible for reviewing and evaluating the overall
performance of the Companys financial reporting and accounting practices and for
involvement in the appointment of the independent auditors. The Audit Committee meets
periodically with management and the independent auditors to discuss any and all matters
within the Committees responsibilities. The independent auditors have free access to
the Audit Committee, without the presence of management if so requested.

The
Companys financial statements have been audited by PricewaterhouseCoopers LLP,
independent auditors, whose report appears on page 24. In addition, PricewaterhouseCoopers
LLP annually provides to management and the Audit Committee recommendations to improve
internal controls or enhance administrative procedures.

/s/ William D. Gehl William D. GehlChairman
of the Board of Directorsand Chief Executive Officer

/s/ Kenneth P. Hahn Kenneth P. Hahn Vice President of Finance
and Chief Financial Officer

23

---

# Report of Independent
Auditors

To the Board of Directors
and Shareholders of Gehl Company

In
our opinion, the consolidated financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of Gehl Company and its
subsidiaries at December 31, 2003 and December 31, 2002, and the results of their
operations and their cash flows for each of the three years in the period ended December
31, 2003, in conformity with accounting principles generally accepted in the United States
of America. In addition, in our opinion, the financial statement schedule listed in the
accompanying index presents fairly, in all material respects, the information set forth
therein when read in conjunction with the related consolidated financial statements. These
financial statements and financial statement schedule are the responsibility of the
Companys management; our responsibility is to express an opinion on these financial
statements and financial statement schedule based on our audits. We conducted our audits
of these statements in accordance with auditing standards generally accepted in the United
States of America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

As
discussed in Note 5 to the consolidated financial statements, the Company adopted
Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible
Assets, effective January 1, 2002.

/s/
PricewaterhouseCoopers LLPMilwaukee, Wisconsin February 20, 2004

24

---

# Gehl Company and
SubsidiariesConsolidated Balance Sheets

|2003                                                                 
|---------------------------------------------------------------------
|Assets                                                               
|Cash                                                                 
|Accounts receivable-net                                              
|Finance contracts receivable-net                                     
|Inventories                                                          
|Deferred income tax assets                                           
|Prepaid expenses and other current assets                            
|                                                                     
|Total current assets                                                 
|                                                                     
|Property, plant and equipment-net                                    
|Finance contracts receivable-net, non-current                        
|Goodwill                                                             
|Other assets                                                         
|                                                                     
|Total assets                                                         
|                                                                     
|Liabilities and Shareholders' Equity                                 
|Current portion of debt obligations                                  
|Accounts payable                                                     
|Accrued and other current liabilities                                
|                                                                     
|Total current liabilities                                            
|                                                                     
|Line of credit facility                                              
|Long-term debt obligations                                           
|Deferred income tax liabilities                                      
|Other long-term liabilities                                          
|                                                                     
|Total long-term liabilities                                          
|                                                                     
|Common stock, $.10 par value, 25,000,000 shares authorized, 5,333,439
|and 5,373,650 shares outstanding at December 31, 2003 and 2002,      
|respectively                                                         
|Preferred stock, $.10 par value, 2,000,000 shares authorized, 250,000
|shares designated as Series A preferred stock, no shares issued      
|Capital in excess of par                                             
|Retained earnings                                                    
|Accumulated other comprehensive loss                                 
|                                                                     
|Total shareholders' equity                                           
|                                                                     
|Total liabilities and shareholders' equity                           
|                                                                     
|Contingencies (Notes 2 and 15)                                       
|                                                                     

The accompanying notes
are an integral part of the financial statements.

25

---

# Gehl Company and SubsidiariesConsolidated
Statements of Income

|2003                                          
|----------------------------------------------
|Net sales                                     
|Cost of goods sold                            
|                                              
|Gross profit                                  
|Selling, general and administrative expenses  
|Strategic review process costs                
|Asset impairment and other restructuring costs
|                                              
|Total operating expenses                      
|                                              
|Income from operations                        
|Interest expense                              
|Interest income                               
|Other income (expense), net                   
|                                              
|Income before income taxes                    
|Provision for income taxes                    
|                                              
|Net income                                    
|                                              
|Diluted net income per common share           
|                                              
|Basic net income per common share             
|                                              

The accompanying notes are an
integral part of the financial statements.

26

---

# Gehl Company and
SubsidiariesConsolidated Statements of Shareholders Equity

|In Thousands                                    | Total |  | Comprehensive
Income (Loss) |         | Retained
Earnings |   | Accumulated
Other
Comprehensive
Loss |   | Common
Stock |         | Capital
In Excess
of Par |  
|----------------------------------------------- | ----- |  | --------------------------- | ------- | ----------------- | - | ------------------------------------ | - | ------------ | ------- | ------------------------ | -
|Balance at December 31, 2000                    |       |  | $                           | 103,018 |                   |   |                                      |   | $            | 96,124  |                          | $
|Comprehensive income:                           |       | 
|Net income                                      |       |  |                             | 2,305   |                   | $ | 2,305                                |   |              | 2,305   |                          |  
|Minimum pension liability adjustments,          |       | 
|net of $3,087 of taxes                          |       |  |                             | (5,732  | )                 |   | (5,732                               | ) |              |         |                          |  
|Unrealized gains (losses), net of $31 of taxes  |       |  |                             | (58     | )                 |   | (58                                  | ) |              |         |                          |  
|                                                |      
|Comprehensive loss                              |       |  |                             |         |                   |   | (3,485                               | ) |              |         |                          |  
|                                                |      
|Exercise of stock options                       |       |  |                             | 357     |                   |   |                                      |   |              |         |                          |  
|Treasury stock purchases/cancellations          |       |  |                             | (245    | )                 |   |                                      |   |              |         |                          |  
|Other                                           |       |  |                             | 376     |                   |   |                                      |   |              |         |                          |  
|                                               
|Balance at December 31, 2001                    |       |  |                             | 100,021 |                   |   |                                      |   |              | 98,429  |                          |  
|Comprehensive income:                           |       | 
|Net income                                      |       |  |                             | 1,043   |                   |   | 1,043                                |   |              | 1,043   |                          |  
|Minimum pension liability adjustments,          |       | 
|net of $2,839 of taxes                          |       |  |                             | (5,272  | )                 |   | (5,272                               | ) |              |         |                          |  
|Currency translation adjustment                 |       |  |                             | 551     |                   |   | 551                                  |   |              |         |                          |  
|Unrealized gains (losses), net of $138 of taxes |       |  |                             | (256    | )                 |   | (256                                 | ) |              |         |                          |  
|                                                |      
|Comprehensive loss                              |       |  |                             |         |                   |   | (3,934                               | ) |              |         |                          |  
|                                                |      
|Exercise of stock options                       |       |  |                             | 623     |                   |   |                                      |   |              |         |                          |  
|Treasury stock purchases/cancellations          |       |  |                             | (692    | )                 |   |                                      |   |              |         |                          |  
|Other                                           |       |  |                             | 120     |                   |   |                                      |   |              |         |                          |  
|                                               
|Balance at December 31, 2002                    |       |  |                             | 96,138  |                   |   |                                      |   |              | 99,472  |                          |  
|Comprehensive income:                           |       | 
|Net income                                      |       |  |                             | 2,630   |                   |   | 2,630                                |   |              | 2,630   |                          |  
|Minimum pension liability adjustments,          |       | 
|net of $855 of taxes                            |       |  |                             | (1,589  | )                 |   | (1,589                               | ) |              |         |                          |  
|Currency translation adjustment                 |       |  |                             | 995     |                   |   | 995                                  |   |              |         |                          |  
|Unrealized gains (losses), net of $104 of taxes |       |  |                             | 195     |                   |   | 195                                  |   |              |         |                          |  
|                                                |      
|Comprehensive income                            |       |  |                             |         |                   | $ | 2,231                                |   |              |         |                          |  
|                                                |      
|Exercise of stock options                       |       |  |                             | 316     |                   |   |                                      |   |              |         |                          |  
|Treasury stock purchases/cancellations          |       |  |                             | (729    | )                 |   |                                      |   |              |         |                          |  
|Other                                           |       |  |                             | 44      |                   |   |                                      |   |              |         |                          |  
|                                               
|Balance at December 31, 2003                    |       |  | $                           | 98,000  |                   |   |                                      |   | $            | 102,102 |                          | $
|                                               

The accompanying notes are an
integral part of the financial statements.

27

---

# Gehl Company and
SubsidiariesConsolidated Statements of Cash Flows

|2003                                                       
|-----------------------------------------------------------
|Cash Flows from Operating Activities                       
|Net income                                                 
|Adjustments to reconcile net income to net cash provided by
|(used for) operating activities:                           
|Depreciation                                               
|Amortization                                               
|Asset impairment (non-cash)                                
|Cost of sales of finance contracts                         
|Deferred income taxes                                      
|Proceeds from sales of finance contracts                   
|Increase (decrease) in cash, excluding the effects of      
|business acquisition, due to changes in:                   
|Accounts receivable-net                                    
|Finance contracts receivable-net                           
|Inventories                                                
|Prepaid expenses and other current assets                  
|Other assets                                               
|Accounts payable                                           
|Other liabilities                                          
|                                                           
|Net cash provided by (used for) operating activities       
|                                                           
|Cash Flows from Investing Activities                       
|Property, plant and equipment additions                    
|Proceeds from sale of property, plant and equipment        
|Acquisition of business, net of cash required              
|(Decrease) increase in other assets                        
|                                                           
|Net cash provided by (used for) investing activities       
|                                                           
|Cash Flows from Financing Activities                       
|(Repayments of) proceeds from revolving credit loans       
|Repayment of industrial development bonds, net of debt     
|reserve fund                                               
|Repayments of other borrowings-net                         
|Proceeds from issuance of common stock                     
|Treasury stock purchases                                   
|                                                           
|Net cash (used for) provided by financing activities       
|                                                           
|Net increase (decrease) in cash                            
|Cash, beginning of year                                    
|                                                           
|Cash, end of year                                          
|                                                           

The accompanying notes
are an integral part of the financial statements.

28

---

# Gehl Company and
SubsidiariesNotes To Consolidated Financial Statements

# Note 1 
Significant Accounting Policies

Consolidation:
Gehl Company is engaged in the manufacture and distribution of equipment and machinery for
the construction market, and in the manufacture and distribution of equipment and
machinery primarily for the dairy, livestock and poultry agricultural sector. The
consolidated financial statements include the accounts of the Company and its wholly-owned
subsidiaries. All intercompany transactions and balances are eliminated.

Use
of Estimates: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make
estimates and assumptions, in certain circumstances, that affect the reported amounts of
assets and liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting period. Ultimate realization of assets and
settlement of liabilities in the future could differ from those estimates.

Revenue
Recognition: The Company recognizes revenue when all of the following criteria are
met: persuasive evidence of an arrangement exists; delivery has occurred and ownership has
transferred to the dealer or distributor; the price to the dealer or distributor is fixed
and determinable; and collectability is reasonably assured. The Company meets these
criteria for revenue recognition upon shipment of products to dealers and distributors.

Sales
Incentives: Effective January 1, 2002, the Company adopted the provisions of Emerging
Issues Task Force (EITF) 00-25, Vendor Income Statement Characterization
of Consideration Paid to a Retailer of the Vendors Products. As a result of
adopting EITF 00-25, the Company now classifies the costs associated with sales incentives
provided to dealers as a reduction of net sales. Prior to January 1, 2002, these costs
were included in selling, general and administrative expenses. Net sales and selling,
general and administrative expenses for the year ended December 31, 2001 have been
reclassified to conform to the 2003 and 2002 presentation. This reclassification had no
impact on reported income before income taxes or net income.

Accounts
Receivable: The Company provides financing for its dealers in both the construction
and agricultural markets. The financing agreements provide for, in certain instances,
interest-free periods which generally range from four to nine months.

Finance
Contracts Receivable: The Company offers financing for its products to retail
customers and to its dealers. Finance contracts require periodic installments of principal
and interest over periods of up to 60 months. Unearned interest is recognized over the
life of the contracts using the sum of the digits method. Principal expected to be
collected within twelve months of the balance sheet date is classified as a current asset;
the remainder is classified as a non-current asset.

Inventories:
Inventories are valued at the lower of cost or market. Cost is determined by the last-in,
first-out (LIFO) method for the majority of the Companys inventories.

Properties
and Depreciation: Properties are stated at cost. When properties are sold or otherwise
disposed of, cost and accumulated depreciation are removed from the respective accounts
and any gain or loss is included in income. The Company provides for depreciation of
assets using the straight-line method for financial reporting purposes and accelerated
methods for income tax purposes. Depreciation is recorded using the following estimated
useful lives for financial statement purposes:

|                             
|-----------------------------
|Buildings                    
|Machinery and equipment      
|Autos and trucks             
|Office furniture and fixtures
|                             

Expenditures
which substantially increase value or extend asset lives are capitalized. Expenditures for
maintenance and repairs are charged against income as incurred.

29

---

The
Company reviews the carrying value of long-lived assets for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment would be determined based on a comparison of the undiscounted future operating
cash flows anticipated to be generated during the remaining life of the long-lived assets
to the carrying value. Measurement of any impairment loss would be based on discounted
operating cash flows.

Goodwill
and Other Intangible Assets: The Company adopted Statement of Financial Accounting
Standards (SFAS) No. 142, Goodwill and Other Intangible Assets,
effective January 1, 2002. Under SFAS No. 142, goodwill and intangible assets deemed to
have indefinite lives are no longer amortized; however, such assets must be tested for
impairment at least annually. Amortization continues to be recorded for other intangible
assets with definite lives. The Company is subject to financial statement risk in the
event that goodwill becomes impaired.

Foreign
Currency Transactions: Foreign currency transaction gains and (losses) are included in
the determination of income. Foreign currency gains (losses) were $441,000, $85,000 and
($113,000) in 2003, 2002 and 2001, respectively.

Foreign
Currency Translation: Assets and liabilities of the Companys foreign subsidiary
are translated at current exchange rates, and related revenues and expenses are translated
at the weighted-average exchange rates in effect for the year. Net exchange gains or
losses resulting from the translation of foreign financial statements and the effect of
exchange rate changes on intercompany transactions of a long-term investment nature are
accumulated and credited or charged directly to a separate component of shareholders
equity, titled Accumulated Other Comprehensive Income (Loss).

Income
Taxes: The Company follows the liability method in accounting for income taxes. The
liability method provides that deferred tax assets and liabilities be recorded based on
the difference between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.

Product
Liability Costs: The Company directly assumes all liability for costs associated with
claims up to specified limits in any policy year. Known incidents involving the
Companys products are investigated and reserves are established for any estimated
liability.

Environmental
Costs: Environmental expenditures that relate to current operations are expensed or
capitalized as appropriate. Expenditures that relate to an existing condition caused by
past operations, and that do not contribute to current or future revenue generation, are
expensed. Liabilities are recorded when environmental assessments and/or remedial efforts
are probable, and the costs can be reasonably estimated.

Research
and Development Costs: Costs for research activities relating to product development
and improvement are charged against income as incurred. Such costs amounted to
approximately $2.6 million, $3.2 million and $3.0 million in 2003, 2002 and 2001,
respectively.

Other
Income (Expense): Other income (expense) is comprised primarily of foreign currency
transaction gains (losses), cost of sales of finance contracts, and other nonoperating
items.

Comprehensive
Income: Comprehensive income is defined as the sum of net income and all other
non-owner changes in equity (or accumulated other comprehensive loss). The components of
accumulated other comprehensive loss were as follows (net of tax) (in thousands):

|2003                                 
|-------------------------------------
|Minimum pension liability adjustments
|Currency translation adjustments     
|Unrealized losses                    
|                                     
|Accumulated other comprehensive loss 
|                                     

30

---

Stock-Based
Compensation: The Company maintains stock option plans for certain of its directors,
officers and key employees, which are described more fully under Note
12Shareholders Equity. The Company accounts for these plans under the
recognition and measurement principles of APB Opinion No. 25, Accounting for Stock
Issued to Employees. No compensation expense has been recognized for options granted
under these plans as the option price was equal to the market value of the Companys
common stock on the date of grant. The effect on net income and net income per share had
the Company applied the fair value recognition provisions of SFAS No. 123,
Accounting for Stock-Based Compensation, is presented below (in thousands,
except per share data):

|2003                                                            
|----------------------------------------------------------------
|Net income, as reported                                         
|Less:  stock-based compensation expense determined based on fair
|value method, net of tax                                        
|                                                                
|Pro forma net income                                            
|                                                                
|Diluted net income per share:                                   
|As reported                                                     
|Pro forma                                                       
|Basic net income per share:                                     
|As reported                                                     
|Pro forma                                                       
|                                                                

The
fair value of each option granted is estimated on the date of grant using the
Black-Scholes option-pricing model with the following weighted-average assumptions used
for grants in 2003, 2002 and 2001:

|2003                            
|--------------------------------
|Expected stock price volatility 
|Risk-free interest rate         
|Expected life of options - years
|                                

The
weighted-average grant-date fair value of options granted during 2003, 2002 and 2001 was
$6.33, $5.06 and $7.09, respectively.

Accounting
Pronouncements: In January 2003, the FASB issued FASB Interpretation No. 46, Consolidation
of Variable Interest Entities, an interpretation of ARB No. 51 (FIN 46).
FIN 46 clarifies the application of Accounting Research Bulletin No. 51, Consolidated
Financial Statements to certain entities in which, among others, equity investors
do not have the characteristics of a controlling financial interest or do not have
sufficient equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. The consolidation provisions of FIN
46, as revised, are effective immediately for interests created after January 31, 2003
and are effective on March 31, 2004 for interests created before February 1, 2003. As of
December 31, 2003, the Company does not own an interest in any variable interest
entities.

Reclassifications:
Certain prior year amounts have been reclassified to conform with the current year
presentation. Such reclassifications had no impact on previously reported net income.

31

---

# Note 2  Accounts
Receivable and Finance Contracts Receivable

Accounts
receivable and finance contracts receivable were comprised of the following (in
thousands):

|2003                           
|-------------------------------
|Accounts receivable            
|Less allowances for:           
|doubtful accounts              
|returns and dealer discounts   
|                               
|                               
|                               
|Finance contracts receivable   
|Less: unearned interest        
|allowance for doubtful accounts
|                               
|                               
|Less: non-current portion      
|                               
|Current portion                
|                               

The
finance contracts receivable at December 31, 2003 have a weighted-average interest rate of
approximately 4.8%.

The
Company has entered into various agreements with third parties to sell with recourse
certain finance contracts receivable. The finance contracts require periodic installments
of principal and interest over periods of up to 60 months, with interest rates based on
market conditions. The Company has retained the servicing of substantially all of these
contracts which generally have maturities of 12 to 48 months. Amounts to cover potential
losses on these sold receivables are included in the allowance for doubtful accounts. The
following summarizes the Companys sales of retail finance contracts receivable
during 2003, 2002 and 2001 (in thousands):

|                                                                               | 2003
|------------------------------------------------------------------------------ | ----
|Value of contracts sold - net of $10.2 million, $7.5 million and $8.4 million, |     
|respectively, of unearned interest                                             |     
|Cash received on sales of contracts                                            |     
|                                                                              
|Cost of sales of finance contracts                                             |     
|                                                                              
|Net receivables outstanding at December 31 relating to finance contracts sold  |     
|                                                                              

The
Company retains as collateral a security interest in the equipment associated with
accounts receivable and unsold finance contracts receivable. The Company also maintains
certain levels of dealer recourse deposits as additional security associated with finance
contracts receivable. The dealer recourse deposits totaled $2.5 million, $2.8 million and
$2.9 million at December 31, 2003, 2002 and 2001, respectively.

32

---

# Note 3  Inventories

The
LIFO costing method was used for 79% and 82% of the Companys inventories at December
31, 2003 and 2002, respectively. If all of the Companys inventories had been valued
on a current cost basis, which approximates FIFO value, estimated inventories by major
classification would have been as follows (in thousands):

|2003                       
|---------------------------
|Raw materials and supplies 
|Work-in-process            
|Finished machines and parts
|                           
|Total current cost value   
|Adjustment to LIFO basis   
|                           
|                           
|                           

# Note 4  Property,
Plant and Equipment  Net

Property,
plant and equipment consisted of the following (in thousands):

|2003                             
|---------------------------------
|Land                             
|Buildings                        
|Machinery and equipment          
|Autos and trucks                 
|Office furniture and fixtures    
|                                 
|                                 
|Less: accumulated depreciation   
|                                 
|Property, plant and equipment-net
|                                 

# Note 5  Goodwill

Effective January
1, 2002, the Company adopted SFAS No. 142, Goodwill and Other Intangible
Assets. Under SFAS No. 142, goodwill will no longer be amortized; however, it must
be tested for impairment at least annually. The following table presents the
Companys net income and diluted and basic net income per share assuming the Company
adopted SFAS No. 142 on January 1, 2001 and excluded goodwill amortization of $0.5 million
from net income for the year ended December 31, 2001 (in thousands, except per share
data):

|Year ended December 31,      | 2001 | 
|---------------------------- | ---- | 
|Net income                   |      | 
|Diluted net income per share |      | 
|Basic net income per share   |      | 
|                            

33

---

The
changes in the carrying amount of goodwill, which is entirely allocated to the
construction equipment segment, for the years ended December 31, 2003 and 2002 were as
follows (in thousands):

|                               
|-------------------------------
|Balance at December 31, 2001   
|Business acquisition           
|                               
|Balance at December 31, 2002   
|Business acquisition adjustment
|                               
|Balance at December 31, 2003   
|                               

# Note 6  Acquisition

Effective
January 1, 2002, the Company began accounting for its investment in a German distributor
of compact equipment throughout Europe (Gehl Europe) as a consolidated
subsidiary, as a result of the Companys controlling influence on the operations of
Gehl Europe as of such date. Prior to January 1, 2002, the Company accounted for its
investment in Gehl Europe under the equity method.

In
December 2002, the Company acquired the remaining two-thirds of the outstanding shares of
Gehl Europe for $0.5 million, net of cash acquired, in order to support the Companys
strategy to expand distribution in the European compact equipment markets. Because the net
assets acquired exceeded the purchase price, goodwill associated with the Companys
previous investment in Gehl Europe was reduced by $0.6 million.

The
fair value of the assets acquired and liabilities assumed and pro forma information to
reflect this acquisition as if it occurred on January 1, 2001 have not been disclosed as
the impact on consolidated assets, liabilities and net income is not material.

# Note 7  Debt
Obligations

A
summary of the Companys debt obligations, and related current maturities, is as
follows (in thousands):

|2003                             
|---------------------------------
|Line of credit facility          
|9.0% industrial development bonds
|Other debt obligations           
|                                 
|                                 
|Less: current portion            
|                                 
|Long-term debt obligations       
|                                 

The
Company maintains a $75 million line of credit facility (the Facility) which
expires December 31, 2004. Interest is paid monthly on outstanding borrowings under the
Facility as follows: borrowings in Canadian denominated dollars up to a U.S. $5.5 million
credit line are at 2.5% above the Canadian one-month bankers acceptance rates; the
remainder of the borrowings are in U.S. dollars and are at 2.5% to 2.65% above the London
Interbank Offered Rate for one-month deposits (LIBOR). Under the Facility, $25 million is
tied to a borrowing base related to the Companys finance contracts receivable and
inventories. The remaining availability is tied to a borrowing base related to the
Companys accounts receivable. Borrowings under the Facility are secured by finance
contracts receivable, inventories and accounts receivable.

At
December 31, 2003, the Company had unused borrowing capacity of approximately $46.8
million under the Facility. The Facility also includes financial covenants requiring the
maintenance of a minimum tangible net worth level and a maximum debt to equity ratio.

34

---

Borrowings
under the Facility are classified as long-term at December 31, 2003 based on the
Companys agreement to amend the existing Facility. Under the terms of this
agreement, the expiration date of the Facility will be extended to December 31, 2007 and
the line of credit will be increased to $90 million each year for the time period March 1
to July 15. All other terms and provisions are similar to the current Facility.

At
December 31, 2003, the 9% industrial development bonds, net of the debt reserve fund, were
defeased in conjunction with the December 2003 sale of the Companys manufacturing
facility in Lebanon, PA (see Note 9).

Annual
maturities of debt obligations are as follows (in thousands):

|    
|----
|2004
|2005
|2006
|2007
|    
|    
|    

Interest
paid on total debt obligations was $3.5 million, $4.0 million and $4.5 million in 2003,
2002 and 2001, respectively.

# Note 8  Accrued
and Other Current Liabilities

Accrued
and other current liabilities were comprised of the following (in thousands):

|2003                           
|-------------------------------
|Accrued salaries and wages     
|Dealer recourse deposits       
|Accrued warranty costs         
|Accrued product liability costs
|Accrued pension obligations    
|Other                          
|                               
|                               
|                               

In
general, the Company provides warranty coverage on equipment for a period of up to twelve
months. The Companys reserve for warranty claims is established based on the best
estimate of the amounts necessary to settle future and existing claims on products sold as
of the balance sheet date. While the Companys warranty costs have historically been
within its calculated estimates, it is possible that future warranty costs could exceed
those estimates.

The
changes in the carrying amount of the Companys total product warranty liability for
the year ended December 31, 2003 were as follows (in thousands):

|                                                                            
|----------------------------------------------------------------------------
|Balance as of December 31, 2002                                             
|Accruals for warranties issued during the period                            
|Accruals related to pre-existing warranties (including changes in estimates)
|Settlements made (in cash or in kind) during the period                     
|                                                                            
|Balance as of December 31, 2003                                             
|                                                                            

35

---

# Note 9  Asset
Impairment and Other Restructuring Costs

On
September 26, 2001, the Company adopted several major plant rationalization initiatives to
improve the Companys profitability by consolidating certain operations. Under these
initiatives, the Company announced it would close its manufacturing facility in Lebanon,
Pennsylvania (Lebanon) and transfer production to other locations. The Company
also indicated it would transfer the manufacturing of its Mustang line of skid steer
loaders from its facility in Owatonna, Minnesota (Owatonna) to its skid steer
facility in Madison, South Dakota. A $4.3 million charge related to the plant
rationalization initiatives was recorded in the third quarter of 2001 in accordance with
accounting principles generally accepted in the United States of America. Of this charge,
$1.5 million and $2.8 million related to the agricultural and construction equipment
segments, respectively. Workforce reductions related to the plant rationalizations totaled
235 employees at the Lebanon and Owatonna facilities, which included 211 employees who
were terminated with severance payments.

The
manufacturing consolidations announced on September 26, 2001 were completed during 2002.
During September and October of 2003, the Company entered into agreements to sell both the
Lebanon and Owatonna facilities and certain related assets. The Company recorded a $3.6
million asset impairment charge in the quarter ended September 27, 2003 (see change in
estimate line in the table below) to adjust the carrying value of the above-referenced
facilities and assets to their net realizable value based on the pending sales. Of the
$3.6 million charge, $1.2 million and $2.4 million related to the construction equipment
and agricultural equipment segments, respectively. The Company sold the Lebanon facility
in December 2003 and defeased the industrial development bonds associated with Lebanon
facility. The sale of the Owatonna facility, which was scheduled to close in December
2003, did not occur as the Company expected. There were no further adjustments to the
Companys balance sheet or results of operations as a result of not completing the
sale. The Company continues to actively pursue the sale of the Owatonna facility. The net
realizable value of the Owatonna facility and related assets has been classified as a
current asset at December 31, 2003 as the Company anticipates selling the facility during
2004.

Details
of the restructuring charge and related activity are as follows (in thousands):

|                            
|----------------------------
|Original Reserve            
|Utilization                 
|                            
|Balance at December 31, 2001
|Utilization                 
|                            
|Balance at December 31, 2002
|Change in estimate          
|Utilization                 
|                            
|Balance at December 31, 2003
|                            

During
the years ended December 31, 2003 and 2002, the Company expensed $0.5 million and $1.0
million, respectively, of other charges related to the plant rationalization initiatives.

Through
December 31, 2003, the Company incurred total asset impairment, restructuring and other
related charges of $9.3 million related to the plant rationalization initiatives.

36

---

# Note 10  Income
Taxes

The
income tax provision recorded for the years ended December 31, 2003, 2002 and 2001
consisted of the following (in thousands):

|    
|----
|2003
|    
|    
|    
|    
|2002
|    
|    
|    
|    
|2001
|    
|    
|    
|    

Consolidated
domestic income before income taxes was $2.0 million, $1.2 million and $3.5 million for
2003, 2002 and 2001, respectively. Foreign income before income taxes was $1.4 million,
$.4 million and $0 for 2003, 2002 and 2001, respectively.

A
reconciliation between the reported income tax provision and the federal statutory rate
follows (as a percent of pre-tax income):

|                                                     | 2003
|---------------------------------------------------- | ----
|Federal statutory rate                               |     
|State income taxes, net of Federal income tax effect |     
|Goodwill                                             |     
|Foreign export sale benefit and other tax credits    |     
|Foreign rate differential                            |     
|Finalization of prior year tax returns               |     
|Other, net                                           |     
|                                                    
|                                                     |     
|                                                    

37

---

The
Companys temporary differences and carryforwards which give rise to deferred tax
assets and liabilities consisted of the following (in thousands):

|2003                         
|-----------------------------
|Accrued expenses and reserves
|Asset valuation reserves     
|Pension benefits             
|Operating loss carryforwards 
|Tax credit carryforwards     
|Property, plant and equipment
|Other, net                   
|Valuation allowance          
|                             
|Net deferred tax asset       
|                             

The
net deferred tax asset is included in the consolidated balance sheet in the following
captions (in thousands):

|2003                           
|-------------------------------
|Deferred income tax assets     
|Deferred income tax liabilities
|                               
|                               
|                               

At
December 31, 2003, the Company had state net operating loss carryforwards of $19.9 million
which will be available for the reduction of future income tax liabilities. A valuation
allowance has been recorded against these carryforwards for which utilization is
uncertain.

Cash
(received) paid related to income taxes during 2003, 2002 and 2001 was $(3.0) million,
$0.1 million and $1.1 million, respectively.

# Note 11  Employee
Retirement Plans

The
Company sponsors two qualified defined benefit pension plans for certain of its employees.
The following schedules set forth a reconciliation of the changes in the plans
benefit obligation and fair value of plan assets and a statement of the funded status (in
thousands):

|2003                                 
|-------------------------------------
|Reconciliation of benefit obligation:
|Obligation at beginning of year      
|Service cost                         
|Interest cost                        
|Actuarial loss                       
|Benefit payments                     
|                                     
|Obligation                           
|                                     

38

---

|Reconciliation of fair value of plan assets:       |  |  |   |         |   |   |         |  
|-------------------------------------------------- |  |  | - | ------- | - | - | ------- | -
|Fair value of plan assets at beginning of year     |  |  | $ | 26,792  |   | $ | 28,274  |  
|Actual return on plan assets                       |  |  |   | 5,666   |   |   | (1,728  | )
|Employer contributions                             |  |  |   | 1,800   |   |   | 2,646   |  
|Benefit payments                                   |  |  |   | (2,644  | ) |   | (2,400  | )
|                                                  
|Fair value of plan assets                          |  |  | $ | 31,614  |   | $ | 26,792  |  
|                                                  
|Funded Status:                                     |  | 
|Funded status at end of year                       |  |  | $ | (14,388 | ) | $ | (12,221 | )
|Unrecognized prior service cost                    |  |  |   | 1,199   |   |   | 1,409   |  
|Unrecognized loss                                  |  |  |   | 21,917  |   |   | 18,891  |  
|                                                  
|Net amount recognized                              |  |  |   | 8,728   |   |   | 8,079   |  
|Employer contributions paid between 9/30 and 12/31 |  |  |   | 558     |   |   | --      |  
|                                                  
|Net amount recognized at December 31               |  |  | $ | 9,286   |   | $ | 8,079   |  
|                                                  

The
following table provides the amounts recognized in the balance sheet (in thousands):

|2003                                
|------------------------------------
|Prepaid benefit cost                
|Intangible asset                    
|Minimum pension liability           
|Accumulated other comprehensive loss
|                                    
|Net amount recognized at December 31
|                                    

The prepaid
benefit cost and the intangible asset amounts are included in non-current other assets.
$7.7 million of the minimum pension liability amount (expected fiscal 2004 funding
requirement) is included in accrued and other current liabilities. The non-current portion
of the minimum pension liability amount is included in other long-term liabilities. The
amount included within other comprehensive income arising from a change in the minimum
pension liability was $2.4 million and $8.1 million for the years ended December 31, 2003
and 2002, respectively.

The
projected benefit obligation, accumulated benefit obligation, and fair value of plan
assets for the plans having accumulated benefit obligations in excess of plan assets were
$46.0 million, $43.5 million and $31.6 million and $39.0 million, $37.1 million and $26.8
million as of December 31, 2003 and 2002, respectively. The accumulated benefit obligation
for the plans was $43.5 million and $37.1 million at December 31, 2003 and 2002,
respectively.

The
assumptions used in the measurement of the Companys benefit obligation are shown in
the following table:

|2003                                            
|------------------------------------------------
|Weighted-average assumptions as of September 30:
|Discount rate                                   
|Rate of compensation increase                   
|                                                

39

---

The
following table provides disclosure of the net periodic benefit cost (in thousands):

|2003                              
|----------------------------------
|Service cost                      
|Interest cost                     
|Expected return on plan assets    
|Amortization of prior service cost
|Amortization of net loss          
|                                  
|Net periodic benefit cost         
|                                  

The assumptions
used in the measurement of the Companys net periodic benefit cost for the years
ended December 31, 2003, 2002 and 2001 are shown in the following table:

|2003                                            
|------------------------------------------------
|Weighted-average assumptions as of September 30:
|Discount rate                                   
|Expected long-term return on plan assets        
|Rate of compensation increase                   
|                                                

The
Companys approach used to determine the expected long-term rate of return on plan
assets assumption is based on weighting historical market index returns for various asset
classes in proportion to the assets held in the Gehl Pension Master Trust
(Trust). Typically, the Trust holds approximately 60% of assets in equity
securities and 40% in fixed income securities. Weighting 10-year compounded trailing
returns on equity and fixed income indices in proportion to the above asset mix yields an
expected long-term return of 9.00%. However, recent unsettled market conditions have
caused management to add a degree of conservatism in the long-term rate of return
assumption, which has been set at 8.75%.

The
following table provides disclosure of the weighted-average asset allocations and future
target allocations as of the respective measurement dates:

|                        
|------------------------
|Asset category:         
|Equity securities       
|Debt securities and cash
|Real estate             
|Other                   
|                        
|                        
|                        

As
manager of plan assets, the Investment Committee (Committee) believes that it
must prudently invest pension assets in a manner that attempts to meet the actuarial
long-term rate of return. At the same time, the Committee adheres to three overriding
responsibilities  to safeguard plan assets, to optimize returns, and to diversify
assets. The Committee retains investment specialists as a means to optimize the total
expected portfolio return. Although all day-to-day investment, custodial, and
administrative responsibilities are delegated to the investment specialists, the Committee
maintains a strong and active hand in matters relating to asset allocation and general
asset management.

40

---

Estimated
future benefit payments, which reflect expected future service, are as follows (in
thousands):

|                 
|-----------------
|2004             
|2005             
|2006             
|2007             
|2008             
|Years 2009 - 2013
|                 

The
measurement date used for each of the actuarial calculations was September 30.

In
addition, the Company maintains an unfunded non-qualified supplemental retirement benefit
plan for certain management employees. The following schedules set forth a reconciliation
of the changes in the plans benefit obligation and a statement of the funded status
(in thousands):

|2003                                 
|-------------------------------------
|Reconciliation of benefit obligation:
|Obligation at beginning of year      
|Service cost                         
|Interest cost                        
|Actuarial loss                       
|Plan amendments                      
|Benefit payments                     
|                                     
|Obligation                           
|                                     
|Funded Status:                       
|Funded status at end of year         
|Unrecognized prior service cost      
|Unrecognized loss                    
|                                     
|Net amount recognized at December 31 
|                                     

The
following table provides the amounts recognized in the balance sheet (in thousands):

|2003                                
|------------------------------------
|Intangible asset                    
|Accrued benefit liability           
|Minimum pension liability           
|                                    
|Net amount recognized at December 31
|                                    

The intangible
asset amounts are included in non-current other assets. The minimum pension liability
amount is included in other long-term liabilities.

The
projected benefit obligation, accumulated benefit obligation, and fair value of the plan
assets having accumulated benefit obligations in excess of plan assets were $4.4 million,
$3.6 million and $0 and $3.9 million, $3.1 million and $0 as of December 31, 2003 and
2002, respectively.

41

---

The
assumptions used in the measurement of the Companys benefit obligation are shown in
the following table:

|2003                                           
|-----------------------------------------------
|Weighted-average assumptions as of December 31:
|Discount rate                                  
|Rate of compensation increase                  
|                                               

The
following table provides disclosure of the net periodic benefit cost (in thousands):

|2003                              
|----------------------------------
|Service cost                      
|Interest cost                     
|Amortization of prior service cost
|Amortization of net loss          
|                                  
|Net periodic benefit cost         
|                                  

The assumptions
used in the measurement of the Companys net periodic benefit cost for the years
ended December 31, 2003, 2002 and 2001 are shown in the following table:

|2003                                           
|-----------------------------------------------
|Weighted-average assumptions as of December 31:
|Discount rate                                  
|Rate of compensation increase                  
|                                               

Estimated
future benefit payments, which reflect expected future service, are as follows (in
thousands):

|                 
|-----------------
|2004             
|2005             
|2006             
|2007             
|2008             
|Years 2009 - 2013
|                 

The
Company maintains a Rabbi Trust containing $1.1 million and $1.0 million of assets
designated for the non-qualified supplemental retirement benefit plan as of December 31,
2003 and 2002, respectively. The assets of the Rabbi Trust are invested in equity
securities and variable life insurance policies.

The
Company maintains a savings and profit sharing plan. The Company matches 50% of
non-bargaining unit employee contributions to the plan not to exceed 6% of an
employees annual compensation. Vesting of Company contributions occur at the rate of
20% per year. Contributions approximated $493,000, $580,000 and $606,000 in 2003, 2002 and
2001, respectively.

The
Company maintains a defined contribution plan that covers certain employees not covered by
a defined benefit plan. The Company contributes various percentages of eligible employee
compensation (as defined) and the plan does not allow employee contributions. The Company
contributed approximately $287,000, $347,000 and $337,000 in connection with this plan in
2003, 2002 and 2001, respectively.

42

---

The
Company provides postemployment benefits to certain retirees in two areas: a $2,500 life
insurance policy for retired office employees and subsidized health insurance benefits for
early retirees prior to their attaining age 65. The number of retirees associated with
postemployment benefit costs is approximately 216.

The
following schedules set forth a reconciliation of the changes in the postemployment
plans benefit obligation and a statement of the funded status (in thousands):

|2003                                 
|-------------------------------------
|Reconciliation of benefit obligation:
|Obligation at beginning of year      
|Service cost                         
|Interest cost                        
|Actuarial loss (gain)                
|Benefit payments                     
|                                     
|Obligation                           
|                                     
|Funded Status:                       
|Funded status at end of year         
|Unrecognized transition obligation   
|Unrecognized loss                    
|                                     
|Net amount recognized at December 31 
|                                     

The
discount rate used in determining the accumulated postemployment obligation was 6.25% and
6.75% as of the measurement dates of December 31, 2003 and 2002, respectively.

The
following table provides disclosure of the net periodic benefit cost (in thousands):

|2003                                 
|-------------------------------------
|Service cost                         
|Interest cost                        
|Amortization of transition obligation
|Amortization of net loss             
|                                     
|Net periodic benefit cost            
|                                     

The discount
rate used in determining the net periodic benefit cost was 6.75%, 7.25% and 7.75% as of
the measurement dates of December 31, 2003, 2002 and 2001, respectively. The assumed
health care cost rate trend used in measuring the accumulated postemployment benefit
obligation at December 31, 2003 was 9% decreasing to 5% over four years and at December
31, 2002 was 7.5% decreasing to 5% in five years.

Assumed
health care cost trend rates have a significant effect on the amounts reported for the
health care plans. A 1% change in assumed health care cost trend rates would have the
following effects (in thousands):

|                                                                                                               
|---------------------------------------------------------------------------------------------------------------
|Effect on total of service and interest  cost components of netperiodic postemployment health care benefit cost
|Effect on the health care component of the accumulated                                                         
|postemployment benefit obligation                                                                              
|                                                                                                               

43

---

Estimated
future benefit payments, which reflect expected future service, are as follows (in
thousands):

|                 
|-----------------
|2004             
|2005             
|2006             
|2007             
|2008             
|Years 2009 - 2013
|                 

# Note 12 
Shareholders Equity

During
April 2000, the 2000 Equity Incentive Plan was adopted, which authorizes the granting of
awards for up to 600,000 shares of the Companys common stock. An award is defined
within the 2000 Equity Incentive Plan as a stock option, stock appreciation right,
restricted stock or performance share. In April 1996, the 1995 Stock Option Plan was
adopted, which authorizes the granting of options for up to 600,000 shares of the
Companys common stock. The Plans provide that options be granted at an exercise
price not less than fair market value on the date the options are granted and that the
options generally vest ratably over a period not exceeding three years after the grant
date. The option period shall not be more than ten years after the grant date.

Following
is a summary of activity in the Plans for 2001, 2002 and 2003:

|                              
|------------------------------
|Outstanding, January 1, 2001  
|Granted                       
|Exercised                     
|Cancelled                     
|                              
|Outstanding, December 31, 2001
|                              
|Granted                       
|Exercised                     
|Cancelled                     
|                              
|Outstanding, December 31, 2002
|                              
|Granted                       
|Exercised                     
|Cancelled                     
|                              
|Outstanding, December 31, 2003
|                              
|Exercisable, December 31, 2003
|                              

The
exercise price for options outstanding at December 31, 2003 range from $7.63 to $22.50 per
share. The weighted-average remaining contractual life of these options approximates seven
years.

44

---

In
September 2001, the Companys Board of Directors authorized a repurchase plan
providing for the repurchase of up to 500,000 shares of the Companys outstanding
common stock. The Company repurchased 73,700, 63,200 and 15,000 shares in the open market
under this authorization at a cost of $729,000, $692,000 and $245,000 during 2003, 2002
and 2001, respectively. All treasury stock acquired by the Company has been cancelled and
returned to the status of authorized but unissued shares.

On
May 28, 1997, the Board of Directors of the Company adopted a Shareholder Rights Plan and
declared a rights dividend of one preferred share purchase right (Right) for
each share of common stock outstanding on June 16, 1997, and provided that one Right would
be issued with each share of common stock thereafter issued. The Shareholder Rights Plan
provides that in the event a person or group acquires or seeks to acquire 15% or more of
the outstanding common stock of the Company, the Rights, subject to certain limitations,
will become exercisable. Each Right, once exercisable, initially entitles the holder
thereof (other than the acquiring person, whose rights are cancelled) to purchase from the
Company one one-hundredth of a share of Series A preferred stock at an initial exercise
price of $55 per one one-hundredth of a share (subject to adjustment), or, upon the
occurrence of certain events, common stock of the Company or common stock of an
acquiring company having a market value equivalent to two times the exercise
price. Subject to certain conditions, the Rights are redeemable by the Board of Directors
for $.01 per Right and are exchangeable for shares of common stock. The Rights have no
voting power and expire on May 28, 2007.

# Note 13  Net
Income Per Share

Basic
net income per common share is computed by dividing net income by the weighted-average
number of common shares outstanding for the period. Diluted net income per common share is
computed by dividing net income by the weighted-average number of common shares and, if
applicable, common stock equivalents which would arise from the exercise of stock options.
A reconciliation of the shares used in the computation is as follows (in thousands):

|2003             
|-----------------
|Basic shares     
|Effect of options
|                 
|Diluted shares   
|                 

# Note 14  Leases

The
Company uses certain equipment under operating lease arrangements. Rent expense under such
arrangements amounted to $1,447,000, $1,285,000 and $1,193,000 in 2003, 2002 and 2001,
respectively.

The
Company maintains non-cancelable operating leases for certain equipment. Future minimum
lease payments under such leases at December 31, 2003 are as follows (in thousands):

|     
|-----
|2004 
|2005 
|2006 
|2007 
|     
|Total
|     

# Note 15 
Contingencies

The
Company is involved in litigation of which the ultimate outcome and liability to the
Company, if any, is not presently determinable. Management believes that final disposition
of such litigation will not have a material impact on the Companys results of
operations or financial position.

45

---

# Note 16  Segment
Information

The
Company has two segments, construction equipment and agricultural equipment, as the
long-term financial performance of these segments is affected by separate economic
conditions and cycles. Segment net sales and income from operations tend to be aligned
with the distribution networks of the Company, and correlate with the manner in which the
Company evaluates performance.

Construction
equipment is manufactured and distributed for customers in the construction market.
Products include a diversified offering of skid loaders, telescopic handlers, compact
excavators, compact track loaders, all-wheel-steer loaders, compact loaders, paving
equipment and attachments. As of December 31, 2003, 58% of the Companys accounts
receivable were from customers in the construction market.

Agricultural
equipment is manufactured and distributed for customers in the dairy, livestock and
poultry agricultural sectors. The products are comprised primarily of skid loaders and
equipment for haymaking, forage harvesting, feed making, manure handling and attachments.
As of December 31, 2003, 42% of the Companys accounts receivable were from customers
in the agricultural sector.

Unallocated
assets are cash, deferred income taxes and other assets not identified with the
Companys segments. Segments of business are presented below (in thousands):

|                              | 2003
|----------------------------- | ----
|Net Sales                     |     
|                              |     
|                              |     
|                              |     
|                             
|Income (Loss) from Operations |     
|                              |     
|                              |     
|                              |     
|                             
|Assets (year-end)             |     
|                              |     
|                              |     
|                              |     
|                              |     
|                             
|Depreciation/Amortization     |     
|                              |     
|                              |     
|                              |     
|                              |     
|                             
|Capital Expenditures          |     
|                              |     
|                              |     
|                              |     
|                             

Of
the Companys total net sales, $50.5 million and $43.9 million were made outside of
the United States in 2003 and 2002, respectively.

46

---

# Note 17  Quarterly
Financial Data (unaudited)

|In Thousands, Except Per Share Data -       | First
Quarter |  | Second
Quarter |        | Third
Quarter |   | Fourth
Quarter |  | Total |       
|------------------------------------------- | ------------- |  | -------------- | ------ | ------------- | - | -------------- |  | ----- | ------
|2003                                        |               |  |                |        |               |   |                |  |       |       
|Net sales                                   |               |  | $              | 58,531 |               | $ | 68,551         |  | $     | 60,465
|Gross profit                                |               |  |                | 12,263 |               |   | 14,466         |  |       | 13,119
|Net income (loss)                           |               |  |                | 508    |               |   | 2,241          |  |       | (903  
|Diluted net income (loss) per common share1 |               |  |                | .09    |               |   | .42            |  |       | (.17  
|Basic net income (loss) per common share    |               |  |                | .09    |               |   | .42            |  |       | (.17  
|                                           
|2002                                        |               |  |                |        |              
|Net sales                                   |               |  | $              | 60,068 |               | $ | 66,689         |  | $     | 54,575
|Gross profit                                |               |  |                | 13,359 |               |   | 14,227         |  |       | 11,708
|Net income (loss)                           |               |  |                | 229    |               |   | 895            |  |       | 223   
|Diluted net income (loss) per common share1 |               |  |                | .04    |               |   | .16            |  |       | .04   
|Basic net income (loss) per common share    |               |  |                | .04    |               |   | .17            |  |       | .04   
|                                           

1Due to the use of the
weighted-average shares outstanding each quarter for computing net income per share, the
sum of the quarterly per share amounts does not equal the per share amount for the year.

47

---

# GEHL COMPANY AND
SUBSIDIARIESSCHEDULE II  VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

|Period            | Description | Balance at
Beginningof Year |                             | Charged to
Costs andExpenses |  | Deductions |       | Balance atEnd of Year |  
|----------------- | ----------- | --------------------------- | --------------------------- | ---------------------------- |  | ---------- | ----- | --------------------- | -
|Year Ended        |             |                             |                             |                              |  |            |       |                       |  
|December 31, 2001 |             |                            
|                  |             |                             | Allowance for               |                              | 
|                  |             |                             | Doubtful Accounts-Trade     |                              | 
|                  |             |                             | Receivables                 |                              |  | $          | 1,864 |                       | $
|                  |             |                             | Returns and Dealer          |                              | 
|                  |             |                             | Discounts                   |                              |  |            | 2,659 |                       |  
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Total                       |                              |  | $          | 4,523 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Allowance for Doubtful      |                              | 
|                  |             |                             | Accounts - Retail Contracts |                              |  | $          | 1,961 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Inventory Obsolescence      |                              | 
|                  |             |                             | Reserve                     |                              |  | $          | 2,004 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Income Tax Valuation        |                              | 
|                  |             |                             | Allowance                   |                              |  | $          | 572   |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|Year Ended        |             |                            
|December 31, 2002 |             |                            
|                  |             |                             | Allowance for Doubtful      |                              | 
|                  |             |                             | Accounts-Trade              |                              | 
|                  |             |                             | Receivables                 |                              |  | $          | 2,235 |                       | $
|                  |             |                             | Returns and Dealer          |                              | 
|                  |             |                             | Discounts                   |                              |  |            | 2,839 |                       |  
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Total                       |                              |  | $          | 5,074 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Allowance for Doubtful      |                              | 
|                  |             |                             | Accounts - Retail           |                              | 
|                  |             |                             | Contracts                   |                              |  | $          | 2,048 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Inventory Obsolescence      |                              | 
|                  |             |                             | Reserve                     |                              |  | $          | 2,112 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Income Tax Valuation        |                              | 
|                  |             |                             | Allowance                   |                              |  | $          | 624   |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|Year Ended        |             |                            
|December 31, 2003 |             |                            
|                  |             |                             | Allowance for Doubtful      |                              | 
|                  |             |                             | Accounts-Trade              |                              | 
|                  |             |                             | Receivables                 |                              |  | $          | 2,629 |                       | $
|                  |             |                             | Returns and Dealer          |                              | 
|                  |             |                             | Discounts                   |                              |  |            | 2,227 |                       |  
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Total                       |                              |  | $          | 4,856 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Allowance for Doubtful      |                              | 
|                  |             |                             | Accounts - Retail           |                              | 
|                  |             |                             | Contracts                   |                              |  | $          | 2,302 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Inventory Obsolescence      |                              | 
|                  |             |                             | Reserve                     |                              |  | $          | 1,774 |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  
|                  |             |                             | Income Tax Valuation        |                              | 
|                  |             |                             | Allowance                   |                              |  | $          | 994   |                       | $
|                  |             |                             |                             |                              |  |            |       |                       |  

48

---

# Item 9.  Changes in and
Disagreements with Accountants on Accounting and Financial Disclosure

There
have been no changes in or disagreements with the Companys accountants regarding
accounting and financial disclosure required to be reported pursuant to this item.

# Item 9A.  Controls and
Procedures

The
Companys management, with the participation of the Companys principal
executive officer and the principal financial officer, has evaluated the Companys
disclosure controls and procedures as of December 31, 2003. Based upon that evaluation,
the Companys principal executive officer and principal financial officer have
concluded that the Companys disclosure controls and procedures were effective as of
December 31, 2003. There was no change in the Companys internal control over
financial reporting that occurred during the three months ended December 31, 2003, that
has materially affected, or is reasonably likely to materially affect, the Companys
internal control over financial reporting.

49

---

# PART III

# Item 10.  Directors and
Executive Officers of the Registrant

Pursuant
to Instruction G, the information required by this item with respect to directors is
hereby incorporated herein by reference from the captions entitled Election of
Directors and Board of Directors set forth in the Companys
definitive Proxy Statement for its 2004 Annual Meeting of Shareholders (Proxy
Statement)1. Information with respect to executive officers of the
Company appears at the end of Part I, on Page 9, of this Form 10-K. Pursuant to
Instruction G, the information required by this item with respect to compliance with
Section 16(a) of the Securities Exchange Act of 1934 is hereby incorporated by reference
from the caption entitled Other Matters  Section 16(a) Beneficial Ownership
Reporting Compliance set forth in the Proxy Statement.

The
Company has adopted a Code of Business Conduct and Ethics that applies to all of the
Companys employees, including the Companys Chief Executive Officer and Chief
Financial Officer. The Company has posted a copy of the Code of Business Conduct and
Ethics on its website at www.gehl.com. The Company intends to satisfy the
disclosure requirements under Item 10 of Form 8-K regarding amendments to, or waivers
from, the Code of Business Conduct and Ethics by posting such information on its website
at www.gehl.com. The Company is not including the information contained on its
website as part of, or incorporating it by reference into, this report.

# Item 11.  Executive
Compensation

Pursuant
to Instruction G, the information required by this item is hereby incorporated herein by
reference from the captions entitled Board of Directors and Executive
Compensation set forth in the Proxy Statement; provided, however, that the
subsection entitled Executive Compensation  Report on Executive
Compensation shall not be deemed to be incorporated herein by reference.

# Item 12.  Security
Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Pursuant
to Instruction G, the information required by this item with respect to security ownership
of certain beneficial owners and management is hereby incorporated by reference herein
from the caption Principal Shareholders set forth in the Proxy Statement.

The
following table sets forth information with respect to compensation plans under which
equity securities of the Company are authorized for issuance.

|                                                  |                                                                                                 |                                                                             |                                                                                                                                                  
|------------------------------------------------- | ----------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|Plan category                                     | Number of securities to be
issued upon the exercise of
outstanding options,
warrants and rights | Weighted-average exercise
price of outstanding
options, warrants and rights | Number of securities remaining
available for future issuance
under equity compensation plans
(excluding securities reflected
in the first column)
|Equity compensation plansapproved by security     |                                                                                                 |                                                                             |                                                                                                                                                  
|holders                                           |                                                                                                 |                                                                            
|                                                  |                                                                                                 |                                                                             |                                                                                                                                                  
|Equity compensation plansnot approved by security |                                                                                                 |                                                                            
|holders                                           |                                                                                                 |                                                                             |                                                                                                                                                  
|                                                  |                                                                                                 |                                                                             |                                                                                                                                                  
|Total                                             |                                                                                                 |                                                                             |                                                                                                                                                  
|                                                  |                                                                                                 |                                                                             |                                                                                                                                                  

The
Companys only equity compensation plan not approved by security holders is the Gehl
Company Director Stock Grant Plan. Under that plan, on December 31 of each year, each of
the non-employee directors of the Company is granted shares of the Companys common
stock with a market value of $5,000 as part of each directors annual retainer fee.

# Item 13.  Certain
Relationships and Related Transactions

Pursuant
to Instruction G, the information required by this item is hereby incorporated herein by
reference from the caption entitled Other Matters  Certain Transactions
set forth in the Proxy Statement.

50

---

# Item 14.  Principal
Accountant Fees and Services

The
information required by this item is hereby incorporated by reference from the captions
entitled Audit Committee Report and Other MattersIndependent
Auditors set forth in the Proxy Statement.

---

|1 | The
Proxy Statement will be filed with the Commission pursuant to Regulation 14A.
|- | ---------------------------------------------------------------------------------

51

---

# PART IV

# Item 15.  Exhibits,
Financial Statement Schedules and Reports on Form 8-K

| | (a) | 1
and 2. Financial statements andfinancial statement schedule.
| | --- | --------------------------------------------------------------

| | Reference
is made to the separate index to the Companys consolidated financial statements and
schedule contained in Part II, Item 8 of this Form 10-K.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.  Exhibits.
| | -------------

| | Reference
is made to the separate exhibit index contained on Pages 54 through 58 hereof.
| | ----------------------------------------------------------------------------------------

| | (b) | Reports
on Form 8-K.
| | --- | --------------------

| | The
Company furnished a Current Report of Form 8-K, dated October 24, 2003 reporting (under
Items 7 and 12) the Companys financial results for the three-and nine-month periods
ended September 27, 2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

52

---

# SIGNATURES

Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                    | GEHL COMPANY                      
|------------------- | ----------------------------------
|Date: March 4, 2004 | By  /s/ William D. Gehl           
|                    | William D. Gehl,                  
|                    | Chairman of the Board of Directors
|                    | and Chief Executive Officer       

Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the Registrant and in the capacities and on
the dates indicated.

|Signature              | Title                                                | Date         
|---------------------- | ---------------------------------------------------- | -------------
|/s/ William D. Gehl    | Chairman of the Board of Directors,                  | March 4, 2004
|William D. Gehl        | Chief Executive Officer and Director                
|                       | (Principal Executive Officer)                       
|/s/ Kenneth P. Hahn    | Vice President of Finance and Chief Financial        | March 4, 2004
|Kenneth P. Hahn        | Officer (Principal Financial and Accounting Officer)
|/s/ Nicholas C. Babson | Director                                             | March 4, 2004
|Nicholas C. Babson    
|/s/ Thomas J. Boldt    | Director                                             | March 4, 2004
|Thomas J. Boldt       
|/s/ John T. Byrnes     | Director                                             | March 4, 2004
|John T. Byrnes        
|/s/ Richard J. Fotsch  | Director                                             | March 4, 2004
|Richard J. Fotsch     
|/s/ Kurt Helletzgruber | Director                                             | March 4, 2004
|Kurt Helletzgruber    
|/s/ John W. Splude     | Director                                             | March 4, 2004
|John W. Splude        
|/s/ Dr. Hermann Viets  | Director                                             | March 4, 2004
|Dr. Hermann Viets     

53

---

# GEHL COMPANYINDEX TO
EXHIBITS

|Exhibit Number | Document Description
|-------------- | --------------------

| | (3.1) | Restated
Articles of Incorporation, as amended, of Gehl Company [Incorporated by
               reference to Exhibit 3.1 to the Companys Quarterly Report on Form
10-Q for                the quarter ended June 28, 1997]
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3.2) | By-laws
of Gehl Company, as amended
| | ----- | -----------------------------------

| | (3.3) | Amendment
to the By-laws of Gehl Company
| | ----- | ----------------------------------------

| | (4.1) | Amended
and Restated Loan and Security Agreement by and between ITT Commercial
               Finance Corp. (now known as Deutsche Financial Services Corporation) and
Gehl                Company and its subsidiaries, dated October 1, 1994 [Incorporated by
reference                to Exhibit 4.1 of the Companys Annual Report on Form 10-K
for the year                ended December 31, 1994]
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.2) | First
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, f/k/a ITT Commercial
Finance                Corp., and Gehl Company and its subsidiaries, dated May 10, 1995
[Incorporated                by reference to Exhibit 4.1 of the Companys Quarterly
Report on Form 10-Q                for the quarter ended July 1, 1995]
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.3) | Amendment
to Amended and Restated Loan and Security Agreement by and between
               Deutsche Financial Services Corporation, f/k/a ITT Commercial Finance
Corp.,                Deutsche Financial Services Canada Corporation and Gehl Company and
its                subsidiaries, dated December 1, 1995 [Incorporated by reference to
Exhibit 4.1                of the Companys Annual Report on Form 10-K for the year
ended December 31,                1995]
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.4) | Third
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services                Canada Corporation and Gehl Company and its subsidiaries, dated
as of July 15,                1996 [Incorporated by reference to Exhibit 4.4 of the
Companys Annual                Report on Form 10-K for the  year ended December 31,
1997]
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.5) | Amendment
to Amended and Restated Loan and Security Agreement by and between
               Deutsche Financial Services Corporation, Deutsche Financial Services
Canada                Corporation and Gehl Company and its subsidiaries, dated October 2,
1997                [Incorporated by reference to Exhibit 4.1 of the Companys
Current Report                on Form 8-K dated October 17, 1997]
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

54

---

| | (4.6) | Fifth
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of February 5, 1998 [Incorporated by reference to
Exhibit 4.6 of the                Companys Annual Report on Form 10-K for the year
ended December 31, 1997]
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.7) | Sixth
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of June 1, 1998 [Incorporated by reference to
Exhibit 4.1 of the                Companys Quarterly Report on Form 10-Q for the
quarter ended June 27,                1998]
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.8) | Seventh
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of September 1, 1998 [Incorporated by reference to
Exhibit 4.1 of the                Companys Quarterly Report on Form 10-Q for the
quarter ended September 26,                1998]
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.9) | Eighth
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of December 30, 1999 [Incorporated by reference to
Exhibit 4.9 to the                Companys Annual Report on Form 10-K for the year
ended December 31, 1999]
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.10) | Ninth
Amendment to Amended and Restated Loan and Security Agreement by and
               between Deutsche Finance Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of June 20, 2000 [Incorporated by reference to
Exhibit 4.1 of the                Companys Quarterly Report on Form 10-Q for the
quarter ended July 1, 2000]
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.11) | Tenth
Amendment to the Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services, a                division of Deutsche Bank Canada, and Gehl Company and its
subsidiaries, dated                as of December 7, 2000 [Incorporated by reference to
Exhibit 4.11 of the                Companys Annual Report on Form 10-K for the year
ended December 31, 2001]
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.12) | Eleventh
Amendment to the Amended and Restated Loan and Security Agreement by                and
between Deutsche Financial Services Corporation, Deutsche Financial Services
               Canada Corporation, a division of Deutsche Bank Canada, and Gehl Company
and its                subsidiaries, dated as of March 19, 2002 [incorporated by
reference to Exhibit                4.1 of the Companys Quarterly Report on Form
10-Q for the quarter ended                March 30, 2002]
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

55

---

| | (4.13) | Twelfth
Amendment to the Amended and Restated Loan and Security Agreement by and
               between Deutsche Financial Services Corporation, Deutsche Financial
Services                Canada Corporation and Gehl Company and its subsidiaries, dated
as of October                17, 2002.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.14) | Amended
and Restated Negotiable Promissory Note signed by Gehl Company and its
               subsidiaries payable to Deutsche Financial Services Corporation, dated
March 19,                2002 [Incorporated by reference to Exhibit 4.2 to the Companys
Quarterly                Report on Form 10-Q for the quarter ended March 30, 2002]
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.15) | Rights
Agreement, dated as of May 28, 1997, between Gehl Company and U.S. Bank
               National Association (as successor to Firstar Trust Company) [Incorporated
by                reference to Exhibit 4.1 to the Companys Registration Statement
on Form                8-A, dated as of May 28, 1997]
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4.16) | Amendment
to Rights Agreement, dated as of September 20, 2002 by and among U.S.                Bank
National Association, Gehl Company and American Stock Transfer and Trust
               Company [Incorporated by reference to Exhibit 4.1 of the Companys
               Quarterly Report on Form 10-Q for the quarter ended September 28, 2002]
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.1)* | Form
of Supplemental Retirement Benefit Agreement between Gehl Company and          Messrs.
Hahn, Keyes, Moore and Mulcahy [Incorporated by reference to Exhibit          10.7 to the
Company's Quarterly Report on Form 10-Q for the quarter ended          July 1, 2000]
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.2)* | Gehl
Company Director Stock Grant Plan, as amended [Incorporated by reference to Exhibit 10.9
to the Companys Quarterly Report on Form 10-Q for the quarter ended July 1, 2000]
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.3)* | Amended
and Restated Employment Agreement between Gehl Company and William D. Gehl dated as of
December 19, 1997 [Incorporated by reference to Exhibit 10.3 of the Companys Annual
Report on Form 10-K for the year ended December 31, 1997]
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.4)* | Amendment
to Amended and Restated Employment Agreement between Gehl Company and William D. Gehl
dated as of June 13, 2001 [Incorporated by reference to Exhibit 10.2 of the Companys
Quarterly Report on Form 10-Q for the quarter ended June 30, 2001]
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.5)* | Supplemental
Retirement Benefit Agreement by and between William D. Gehl and Gehl Company
[Incorporated by reference to Exhibit 10.4 of the Companys Annual Report on Form
10-K for the year ended December 31, 1995]
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.6)* | Amendment
to Supplemental Retirement Benefit Agreement by and between William D. Gehl and Gehl
Company dated as of April 20, 2000 [Incorporated by reference to Exhibit 10.6 of the
Companys Quarterly Report on Form 10-Q for the quarter ended July 1, 2000]
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.7)* | Gehl
Savings Plan, as amended and restated effective July 1, 2001 [Incorporated by reference
to Exhibit 10.1 of the Companys Quarterly Report on Form 10-Q for the quarter ended
September 29, 2001]
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

56

---

| | (10.8)* | Amendment
to Gehl Savings Plan [Incorporated by reference to Exhibit 10.1 of the Companys
Quarterly Report on Form 10-Q for the quarter ended March 30, 2002]
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.9)* | Amendment
to Gehl Savings Plan [Incorporated by reference to Exhibit 10.1 of the Companys
Quarterly Report on Form 10-Q for the quarter ended June 29, 2002]
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.10)* | *Amendment
to Gehl Savings Plan [Incorporated by reference to Exhibit 10.1 of the Companys
Quarterly Report on Form 10-Q for the quarter ended September 27, 2003]
| | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.11)* | Gehl
Company Retirement Income Plan B, as amended and restated [Incorporated by
reference to Exhibit 10.2 to the Companys Quarterly Report on Form 10-Q for the
quarter ended September 29, 2001]
| | -------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.12)* | Amendments
to Gehl Company Retirement Income Plan B [Incorporated by reference to
Exhibit 10.2 of the Companys Quarterly Report on Form 10-Q for the quarter ended
June 29, 2002]
| | -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.13)* | Gehl
Company 1995 Stock Option Plan, as amended [Incorporated by reference to Exhibit 10.1 to
the Companys Quarterly Report on Form 10-Q for the quarter ended July 1, 2000]
| | -------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.14)* | Form
of Stock Option Agreement for executive officers used in conjunction with the Gehl
Company 1995 Stock Option Plan [Incorporated by reference to Exhibit 10.12 of the Companys
Annual Report on Form 10-K for the year ended December 31, 1995]
| | -------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.15)* | Form
of Stock Option Agreement for non-employee directors used in conjunction with the Gehl
Company 1995 Stock Option Plan [Incorporated by reference to Exhibit 10.13 of the Companys
Annual Report on Form 10-K for the year ended December 31, 1995]
| | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.16)* | Gehl
Company 2000 Equity Incentive Plan [Incorporated by reference to Appendix A to the
Company's Proxy          Statement for the 2000 Annual Meeting of Shareholders]
| | -------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.17)* | Form
of Non-Qualified Stock Option Agreement used in conjunction with the Gehl Company 2000
Equity Incentive Plan [Incorporated by reference to Exhibit 4.5 to the Companys
Registration Statement on Form S-8 (Registration No. 333-36102)]
| | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.18)* | Form
of Stock Option Agreement for Non-Employee Directors used in conjunction with the Gehl
Company 2000 Equity Incentive Plan [Incorporated by reference to Exhibit 4.6 to the
Companys Registration Statement on Form S-8 (Registration No. 333-36102)]
| | -------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.19)* | Form
of Change in Control and Severance Agreement between Gehl Company and Messrs. Hahn,
Keyes, Moore and          Mulcahy [Incorporated by reference to Exhibit 10.8 of the
Company's Quarterly Report on Form 10-Q for the quarter ended July 1, 2000]
| | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.20)* | Forms
of Amendment to the Change in Control and Severance Agreement between Gehl Company and
Messrs. Hahn, Keyes, Moore and Mulcahy dated as of June 13, 2001 [Incorporated by
reference to Exhibits 10.3 and 10.4 of the Companys Quarterly Report on Form 10-Q
for the quarter ended June 30, 2001]
| | -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.21)* | Form
of Retention Agreement, dated as of June 13, 2001, between Gehl Company and each of
Messrs. Gehl, Moore, Hahn, Mulcahy and Keyes [Incorporated by reference to Exhibit 10.5
of the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2001]
| | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

57

---

| | (10.22)* | Gehl
Company Deferred Compensation Plan effective August 1, 2000 [Incorporated by reference to
Exhibit 10.1 of the Companys Quarterly Report on Form 10-Q for the quarter ended
September 30, 2000]
| | -------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10.23)* | Gehl
Company 2003 Incentive Bonus Plan [Incorporated by reference to Exhibit 10.1 of the
Companys Quarterly Report on Form 10-Q for the quarter ended March 29, 2003]
| | -------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (21) | Subsidiaries
of Gehl Company
| | ---- | ----------------------------

| | (23) | Consent
of PricewaterhouseCoopers LLP
| | ---- | -------------------------------------

| | (31.1) | Certification
of the Chief Executive Officer pursuant to Section 302 of the
               Sarbanes-Oxley Act of 2002
| | ------ | ---------------------------------------------------------------------------------------------------------------------

| | (31.2) | Certification
of the Chief Financial Officer pursuant to Section 302 of the                Sarbanes
Oxley Act of 2002
| | ------ | ---------------------------------------------------------------------------------------------------------------------

| | (32.1) | Certification
of Periodic Financial Report by the Chief Executive Officer and                Chief
Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
               2002
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (99) | Proxy
Statement for 2004 Annual Meeting of Shareholders (To be filed with the
               Securities and Exchange Commission under Regulation 14A; except to the
extent                incorporated by reference, the Proxy Statement for the 2004 Annual
Meeting of                Shareholders shall not be deemed to be filed with the
Securities and Exchange                Commission as part of this Annual Report on Form
10-K)
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

* A management contract or
compensatory plan or arrangement. Except as otherwise noted, all
documents incorporated by reference are to Commission File No. 0-18110.

58